Coal India Stake Sale On Cards; Centre May Launch ₹5,000-Crore OFS Soon

Coal India Ltd may soon see a fresh government stake sale through the Offer for Sale (OFS) route, with the Centre likely to raise as much as ₹5,000 crore from the transaction, according to people familiar with the matter. The proposed sale is expected to be one of the key divestment moves lined up by the government in FY27.

Sources indicated that the OFS could be launched with a base issue size of ₹2,500 crore, along with a greenshoe option of another ₹2,500 crore, taking the total transaction size to ₹5,000 crore if fully exercised. The indicative floor price is reportedly around ₹412 per share, implying a discount of roughly 10% to Coal India’s prevailing market price.

Coal India shares have remained in focus amid the stake-sale buzz. The company currently commands a market capitalisation of over ₹2.8 lakh crore, making it one of India’s largest public sector enterprises by market value.

Proposed OFS Size And Government Holding

The Government of India held a 63.13% stake in Coal India as of 31 March 2026. The given percentage leaves ample room for further dilution without losing the majority ownership.

Market participants expect the government to dilute up to 2% through the current OFS proposal. However, the final size will depend on several factors.

Coal India remains critical to India’s energy supply chain, contributing nearly 80% of the country’s domestic coal production. The company’s performance has kept investor interest elevated, especially after strong recent earnings supported by robust electricity demand and higher coal dispatch volumes.

Part Of Broader FY27 Divestment Plan

The likely OFS in Coal India is also seen as part of the Centre’s broader FY27 divestment roadmap. Alongside Coal India, the government is understood to be evaluating stake-sale plans in other public sector companies, including Life Insurance Corporation (LIC), Indian Overseas Bank (IOB), and Indian Railway Finance Corporation (IRFC).

Officials are expected to time the Coal India OFS based on market stability.

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