Shares of Coal India plunged on Wednesday, becoming the top loser on the Nifty 50 index, after the Centre announced plans to sell a stake in the state-run miner. The stock dropped as much as 6.4 per cent in early trade, hitting a low of ₹428.40 on the NSE from its previous close of ₹458.15. By 9:24 am, the shares were trading at ₹435.90, down 5 per cent.
The government aims to divest up to 2 per cent of Coal India's equity through an offer-for-sale (OFS). This involves an initial sale of 6.162 crore shares, representing 1 per cent of paid-up capital, with a green shoe option to offload an additional 6.162 crore shares. Investor sentiment weakened following the government’s divestment plan.
The Ministry of Coal is conducting the stake sale on the BSE and NSE, adhering to SEBI norms. Bidding for non-retail investors is scheduled for May 27. Retail investors and eligible employees, who have a reserved quota of 25,000 shares, can participate on May 29, alongside non-retail investors carrying forward unallotted bids from the first day.
This decline in share price occurred despite Coal India reporting strong financial performance for the March quarter. The company posted an 11.1 per cent year-on-year rise in consolidated net profit, reaching ₹10,839.18 crore for Q4FY25. This was up from ₹9,751.64 crore in the corresponding period last year. Revenue from operations also increased to ₹46,490.03 crore, compared with ₹43,961.56 crore a year ago.
