Shares for institutional investors in Coal India OFS over-subscribed

Kolkata/Mumbai: In the opening day of Coal India shares sale by the Centre, the portion of shares reserved for non-retail investors, was oversubscribed by 1.06 times on Wednesday.

According to an NSE data, non-retail investors put in bids for 15.84 crore shares, as against the offer of 14.89 crore shares.

The offer for sale (OFS) will allow retail investors to participate in the bids on Thursday and they would be offered 5 percent discount. These investors would also be allowed to bid shares worth up to Rs 2 lakh.

The Centre proposed to sell 3 percent of its stake or 18.62 crore shares in Coal India through the OFS at a floor price of Rs 266 per share, which could fetch the exchequer Rs 5,000 crore.

The Centre will have an over-subscription option to sell an additional 6 percent stake in the “Maharatna” public sector undertakings on Thursday and if it is offered, the government could get approximately another Rs 10,000 crore.