Coal India Limited (CIL) successfully concluded its Offer For Sale on Friday as the offer was oversubscribed, resulting in a collection of over Rs 4,100 crores by the government.
The government of India announced an OFS in CIL that began on 1st June 2023. The offer intended to offload 1.5% in CIL with a greenshoe option to offload another 1.5%. This OFS was the government’s first major stake sale in its bid to raise Rs 51,000 crores in FY23 by selling stakes in PSUs.
The first day of the OFS, meant for non-retail investors, saw great participation as the response received by the government was overwhelming. The institutional portion was subscribed 346% or 3.46x times.
Due to such oversubscription, the government chose to exercise the greenshoe option to double the Offer size from 9.24 crore shares to 18.49 crore shares. The second day saw the participation of retail investors as their response was positive as well. The retail portion, which was only 10% of the entire issue, was subscribed 1.6x times.
The overwhelmingly positive response by investors in the OFS helped the government make the OFS a success while helping the government raise almost Rs 4,200 crores.
The share of Coal India closed at Rs 230.90 per share on Friday.
