The central government is selling 2% stake in Coal India through OFS. The sale comprises a base offer of 1% shares and an additional 1% stake sale in case of oversubscription. After this announcement today, on May 27, its shares fell by 5% to Rs 428. However, now there has been a slight recovery and it has reached back to 446. The government has fixed the floor price for this sale at ₹412 per share, which is about 11.2% less than its previous closing price. The government aims to raise up to ₹5 thousand crore. OFS window will be open on May 27 and May 29. Profit increased by 11% in the fourth quarter, dividend of ₹ 5.25 per share. Coal India’s performance in the March quarter (Q4) has been stable. The company’s consolidated profit after tax (PAT) stood at Rs 10,908 crore, up 11% year-on-year. Revenue from operations has also increased by about 6% to Rs 46,490 crore. The company’s board has declared a dividend of ₹5.25 per share for FY26, which will be paid subject to shareholder approval at the upcoming AGM. EBITDA during the quarter grew 12% to ₹17,917 crore and EBITDA margin improved to 39% from 36%. Brokerage Firms’ Opinion and Future Target Brokerage firm Elara Capital has maintained its ‘Accumulate’ rating on the stock and raised the target price to ₹522 per share from ₹458. Knowledge Part: Offer for Sale: This is an easy way for promoters of listed companies to sell their stake through the exchange in a transparent manner. Mainly large institutional and retail investors participate in it and it is completed faster than a normal IPO.
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Coal India fell 5% due to news of government stake sale: Plan to raise ₹5000 crore, retail investors will be able to bid on May 29
