Coal India OFS Subscribed 8 Times on Day One, Govt Exercises Greenshoe
The Coal India Limited (CIL) Offer for Sale (OFS) was oversubscribed nearly 8 times on Day 1, with bids totalling about ₹19,000 crore. Strong institutional demand led the Government to exercise the greenshoe (oversubscription) option, expanding the issue size to a 2% stake. The transaction is part of the Centre's disinvestment programme and contributes to non-tax revenue.
Key Facts & Details
8 points- 1Coal India OFS oversubscribed 8x on Day 1, bids of ~₹19,000 crore
- 2Government exercised greenshoe option, expanded issue to 2% stake
- 3Part of disinvestment and asset-monetisation strategy
Deep Dive
- +Coal India Limited is a Maharatna PSU, headquartered in Kolkata
- +OFS is a SEBI-approved mechanism allowing promoters to sell shares through the stock exchange
- +Greenshoe option lets the seller sell additional shares (typically 15%) if demand exceeds expectations
- +Coal India accounts for over 80% of India's domestic coal production
- +It is one of the highest dividend-paying PSUs
Exam Focus
Likely MCQ: Coal India Limited holds which 'Ratna' status among Indian PSUs? → Answer: Maharatna
Related Topics
Exam Relevance & Angle
OFS, Greenshoe, Maharatna status and disinvestment are repeat-frequency banking awareness topics.
Target Exams
Background & Context
Coal India Limited (CIL) is the world's largest coal-mining company by output and India's principal supplier of thermal coal. Headquartered in Kolkata, it was incorporated in 1975 and granted Maharatna status in 2011. CIL produces over 80% of India's domestic coal.
Indian PSUs are graded into Maharatna, Navratna and Miniratna categories based on financial parameters and operational autonomy. There are currently 13 Maharatnas including CIL, ONGC, NTPC, IOC, BHEL, GAIL, HPCL, BPCL, SAIL, Power Grid Corporation, REC and PFC.
An Offer for Sale (OFS) is a SEBI-approved mechanism (introduced in 2012) that allows promoters of listed companies to dilute their holding through the stock exchange route. The greenshoe option — also called the over-allotment option — permits the seller to issue up to 15% additional shares when there is excess demand, stabilising post-issue prices and capturing more proceeds.
Related GK Concepts
Must KnowTest Yourself
1 / 3Coal India Limited (CIL) holds which Ratna status among Indian PSUs?
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