The Government of India will sell 92.44 lakh shares or 0.15 per cent equity stake in Coal India through an Offer for Sale (OFS), the state-owned coal major said on 19 June, the second such move by the company this month.
Coal India “is proposing to offer up to 92,44,092 equity shares (representing 0.15% of the total paid-up equity share capital of the Company) of the face value of Rs 10 each to the eligible employees of the Company at Rs 226.10 per equity share,” the company said in an exchange filing.
The employee OFS shall remain open from June 21 to June 23.
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The Government of India owned a 66.13 per cent stake in the company, while its public shareholding was 33.87 per cent, as of March 2023.
Earlier this month, the government of India raised Rs 4,185 crore by selling a 3 per cent stake in Coal India through an OFS.
The centre’s stake has decreased to 63.13 per cent in the coal producer after the OFS. The issue was oversubscribed by both institutional and retail investors.
For the March 2023 quarter, Coal India reported a consolidated net profit of Rs 5,527.62 crore, down 17.7 per cent from the year-ago quarter. Consolidated revenue for the quarter came in at Rs 35,161.44 crore, up 17.3 per cent from Rs 29,985 crore in the previous quarter.
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According to Nuvama Institutional Equities, the gains during the quarter from increasing coal prices under the fuel supply agreement (FSA), up 5 per cent YoY to Rs 1,550 per tonne.
Coal India is the largest producer of thermal coal to the power sector, with 75-80 per cent of fuel demands being met by the coal behemoth.
Demand for coal is growing on the back of increased power demand for rural electrification.
Coal India shares have surged around 1.20 per cent this year. On 19 June, the share closed 0.46% down at Rs 227.50 on the BSE.
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