NEW DELHI: Coal India Limited, country’s largest coal producer, will sell its 18.49 crore shares, representing 3% of the entire shareholding through an offer-for-sale (OFS). The size of OFS is about Rs 4,000 crore. The company kept the floor price for the OFS at Rs 225 per share, and this is a 6.72% discount in comparison with Wednesday’s closing price of Rs 241.2 for Coal India shares.
According to the exchange filing, the government will offload more than 9.24 crore shares of Coal India, representing 1.5% stake, under the base offer size. If it gets oversubscription, an additional 9.24 crore shares will be offered.
“If the oversubscription option is exercised, the government will collectively offload 3% equity shares of Coal India,” said the company in an exchange filing. The company said OFS will open for non-retail investors on June 1. And the retail investors and non-retail investors, who choose to carry forward their bids, can participate in the issue on June 2.
The employees will be eligible to apply for equity shares up to 5,00,000. The allotment to an employee will be up to 2,00,000 and in the event of under subscription in the employee portion, the total allotment to an employee shall not exceed 5,00,000.