Strong Demand for Coal India Shares Surpasses Sale Expectations

Institutional investors showed immense interest in Coal India's shares on Wednesday, with bids totaling approximately Rs 19,000 crore. This overwhelming response resulted in the issue being oversubscribed 8.14 times on the opening day of the offering.

The government has set a floor price of Rs 412 per share, aiming to offload a 2% stake, which includes a 1% green-shoe option. Arunish Chawla, Secretary of the Department of Investment and Public Asset Management, noted the enthusiastic reception and highlighted the prioritization of allocation based on price. Non-retail investors bid over 45.15 crore shares at around Rs 436.69 per share, exceeding the initial floor price.

Coal India's stock closed at Rs 462.90 on the BSE, marking a 1.01% rise. As the second public sector company to use the OFS route this fiscal year, Coal India's offering follows the government's recent Rs 2,266 crore success from Central Bank of India's stake sale. The budget targets raising Rs 80,000 crore via disinvestment and asset monetisation in FY27.

(With inputs from agencies.)