Coal India Share Price Falls After OFS Announcement; Government Offers Shares at 10% Discount

Shares of Coal India Limited came under heavy selling pressure on Tuesday after the Government of India announced plans to divest up to a 2 percent stake in the company through an Offer for Sale (OFS). Following the announcement, Coal India’s stock declined sharply by nearly 6 percent during early trading hours, triggering strong investor reaction across the market.

The sharp fall in the stock price comes after the government fixed the OFS floor price at ₹412 per share — nearly 10 percent lower than the company’s previous closing price.

Coal India Shares Slip After OFS Announcement

Coal India shares opened at ₹429 on May 27 and soon dropped to an intraday low of ₹428.40 amid increased selling pressure. Market experts believe the steep discount offered under the OFS prompted traders and short-term investors to book profits, leading to the decline in the stock.

The company’s shares remained in focus throughout the trading session as investors closely monitored the government’s stake sale strategy and subscription details.

Government to Raise Around ₹5,000 Crore

According to official details, the Government of India plans to sell a total of 123.2 million shares in Coal India through the OFS route. At the floor price of ₹412 per share, the stake sale is expected to generate nearly ₹5,000 crore for the government.

The OFS includes:

A base offer of 1 percent equity stake

An additional 1 percent “Green Shoe” option in case of oversubscription

The OFS window for non-retail investors opened on May 27, while retail investors will be allowed to participate from May 29 onward.

DIPAM Secretary Shares Details

Sharing information regarding the stake sale, DIPAM Secretary Arunish Chawla stated that the government has launched the OFS with a Green Shoe option to accommodate higher investor demand if the issue receives strong subscription.

The government currently remains the majority stakeholder in Coal India, and this OFS forms part of its broader disinvestment strategy aimed at raising revenue while improving market participation in public sector enterprises.

Why Did Coal India Shares Fall?

The biggest reason behind the sharp correction in Coal India shares is the significant discount offered under the OFS. The floor price of ₹412 is around 10 percent lower than the previous market closing price, making investors cautious in the short term.

In the stock market, shares often witness selling pressure after OFS announcements because traders anticipate price adjustments closer to the discounted offer price.

Analysts also note that short-term volatility is common in such cases, especially when large volumes of shares are introduced into the market.

What Investors Should Know

Despite the short-term correction, market experts believe Coal India remains one of India’s strongest dividend-paying PSU stocks. Long-term investors are now closely evaluating whether the discounted OFS price presents an attractive buying opportunity.

Coal India continues to play a crucial role in India’s energy sector and remains one of the country’s largest coal producers. However, investors are advised to carefully assess market conditions, valuation trends, and broader PSU sentiment before making investment decisions.

Coal India OFS Key Details at a Glance

OFS Floor Price: ₹412 per share

Discount: Around 10% from previous close

Stake Sale Size: Up to 2%

Estimated Government Collection: ₹5,000 crore

OFS for Non-Retail Investors: May 27

OFS for Retail Investors: May 29

The Coal India OFS is expected to remain a major focus for investors and the stock market in the coming days as subscription numbers and investor participation begin to emerge.