The government’s offer-for-sale (OFS) of Coal India shares was subscribed more than eight times on the first day, drawing bids worth over eight times the shares on offer, according to livemint.com. This strong demand reflects investor confidence in the state-owned miner’s diversification efforts. The government plans to raise up to ₹5,000 crore from the stake sale.
The OFS attracted bids totaling 8.14 times the shares available, as confirmed by Arunish Chawla, secretary of the department of investment and public asset management (Dipam). Following the robust subscription, the government has decided to exercise the entire greenshoe option, allowing it to sell additional shares beyond the initial offer size. This move is part of a broader disinvestment and asset monetisation strategy targeting ₹80,000 crore in the fiscal year.
This subscription level underscores strong market appetite for Coal India amid its diversification push, which aims to reduce reliance on coal and expand into other energy sectors. The government’s decision to exercise the greenshoe option signals confidence in achieving the targeted proceeds. The ₹5,000 crore stake sale is a significant component of the government’s ongoing efforts to unlock value from state-owned enterprises and fund fiscal priorities.
Next steps include completing the greenshoe share sale, which will increase the total funds raised. The government will continue its disinvestment program throughout the fiscal year, with Dipam overseeing further stake sales and asset monetisation initiatives. Market participants will watch closely for updates on subsequent offerings and the impact on Coal India’s strategic direction.