Coal India OFS: The central government has made a plan regarding the country’s largest coal company. The government is preparing to sell 3 percent stake in Coal India through the stock market, the government will do this sale through Offer for Sale (OFS). This offer for sale is being brought at a discount of 6.7 per cent on the last stock price of the market. According to the report published in Money Control, the size of this OFS will be Rs 4,000 crore.
Government will sell 3 percent stake
According to the information received, the government will sell 3 percent of its total stake in Coal India. On the other hand, the possible floor price in OFS has been fixed at Rs 225 per share. Whereas the current price of Coal India stock on BSE is Rs 241.20 per share. In such a situation, the possible floor price has been fixed at 6.6 per cent against the existing stock. It is worth noting that through offer for sale, the promoters of the company reduce their stake in the company.
According to the government notification, the government will sell a total of 9.25 equity shares through this OFS, the total face value of which will be Rs 10 per share. This will be 1.50 percent of the total Coal India. At the same time, 9.25 crore shares of the remaining 1.50 percent stake will also be sold through offer for sale. Please tell that this offer for sale will come on 1st and 2nd June. Non-retail investors will be able to invest in this OFS on June 1 and retail investors on June 2.
Coal price has increased after 5 years
Significantly, Coal India has informed the exchange that this increase in the prices of non-coking coal has been approved today i.e. on May 31, 2023. It is worth noting that the prices of coal from G2 to G10 grade have increased by up to 8 percent. With this increase, an increase of Rs 2,703 crore will be registered in the total income of the company.
How will the company’s quarterly results be?
In the beginning of May itself, the company had released its quarterly results. The company has registered a 62 percent increase in profit as compared to last year and it has increased to Rs 28,125 crore. The profit of the company had reached the highest level in the last financial year. In such a situation, the company had declared a dividend of Rs 4 per share. It is worth noting that the central government has 66 percent stake in Coal India and the rest is with public shareholders.
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