Strong Demand from Institutional Buyers for Coal India Shares

Institutional investors show strong interest in Coal India's share sale, bidding around Rs 19,000 crore on the offer's first day. The government is selling a 2% stake at Rs 412 per share, with a green-shoe option. The shares saw higher bids, likely prompting the government to exercise the option.

Institutional investors eagerly purchased Coal India shares on the first day of the offer, submitting bids worth approximately Rs 19,000 crore. This overwhelming demand resulted in offers exceeding eight times the reserved shares for non-retail investors, priced at an indicative Rs 436.69, notably above the floor of Rs 412 per share.

The government is offering over 12.32 crore shares, including a potential extra 1% through a green-shoe option, at a 10% discount compared to Tuesday’s closing price. In light of the enthusiastic response, exercising the green-shoe option seems probable. This is the second public sector Offer For Sale in the fiscal year, following the Central Bank of India stake sale.