The government plans to raise up to ₹5,000 crore by selling a 1% equity stake in state-run Coal India Ltd (CIL), with an option to sell an additional 1% if demand exceeds expectations, according to livemint.com. This move is part of the government's broader disinvestment and asset monetisation target of ₹80,000 crore for the current financial year.
The Department of Investment and Public Asset Management (DIPAM) secretary Arunish Chawla announced the plan on X (formerly Twitter). The sale will be conducted through an offer for sale (OFS), where existing shareholders or promoters divest stakes without issuing new shares. The government currently holds 3.89 billion shares in Coal India, representing a 63.13% stake, which will be the source of the shares offered in this transaction.
This divestment is significant as it contributes to the government’s ambitious disinvestment target for FY27, aiming to unlock value from public sector enterprises. The ₹5,000 crore expected from this sale is a portion of the ₹80,000 crore target, reflecting ongoing efforts to reduce the fiscal burden and improve public finances. Coal India, being a major player in the coal sector, is a key asset in the government's portfolio, and this sale is closely watched by investors and market participants.
Looking ahead, the government will monitor investor response to the initial 1% stake sale and may exercise the green shoe option to sell an additional 1% if demand is strong. The floor price for the OFS has been set, and the transaction timeline will be announced soon, with market participants awaiting further details on the sale process and pricing.