New Delhi: Centre’s offer for sale (OFS) of shares in Coal India received a robust response from non-retail or institutional investors and the issue was subscribed 3.46 times on Thursday.
With the oversubscription of the shares, government has decided to offer another 1.5% share for sale on Thursday.
“Offer for sale in CIL received enthusiastic response from non-retail investors today. The issue was subscribed 3.46 times of the base size. Govt has decided to exercise the green shoe option. Retail investors get to bid tomorrow,” said tweet from Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management.
On Wednesday, the union ministry of coal informed the exchanges that the floor price for OFS would be ₹225 per share. At the floor price, the overall offer size adds up to over ₹4,100 crore.
The offer consists of up to 9,24,40,924 equity shares or 1.5% shares and with the oversubscription, an equivalent amount of share would now be offered on Friday.
The coal ministry said in its letter to the exchanges that up to 5% shares of the total offer may be offered to employees as well.
“Such number of equity shares as would be equivalent to up to 5% of the offer size may be offered to eligible and willing employees of the company, subsequent to the completion of the offer and subject to approval from the competent authorities in accordance with applicable laws. The employees will be eligible to apply for equity shares up to 5,00,000,” it had said.
The allotment to an employee will be up to 2,00,000 and in the event of undersubscription in the employee portion, the total allotment to an employee shall not exceed 5,00,000, it said.
Centre currently holds 66.13% stake in the Maharatna company.
Its share on the BSE closed at ₹230.55 on Thursday, lower by ₹10.65 or 4.42% from its previous close. Its market capitalization currently stands at ₹1.42 trillion.
Last month, the company reported a consolidated net profit of ₹5,528 crore for the fourth quarter of the last fiscal, with a 18% decline from ₹6,715 crore logged in the corresponding quarter of FY22. Its revenue from operations in the January-March quarter rose 17% to ₹38,152 crore.
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Updated: 01 Jun 2023, 09:53 PM IST