Government to offload stake in CIL through offer for sale

The central government will offload up to 3 per cent stake in Coal India Limited (CIL) via an offer-for-sale (OFS).
The government plans to offer up to 92,440,924 equity shares of face value of Rs 10 each, representing 1.50 percent of the total paid-up equity share capital of the company. Furthermore, there is an oversubscription option available, allowing the government to additionally sell 92,440,924 (1.50 per cent) equity shares of the company. If the oversubscription option is exercised, the total equity shares offered will amount to 184,881,848 (3 per cent) of the company’s equity. In the event that the oversubscription option is not exercised, the equity shares forming part of the base offer size will be the sole offer shares. Also, up to five per cent of the offer size may be allocated to eligible and willing employees of CIL, after the completion of the offer, subject to approval from competent authorities and in accordance with applicable laws. The floor price of the offer will be Rs 225 per equity share.