Coal India shares set at Rs.358 each for OFS

The Indian government, which is planning to sell a maximum of 10 percent stake in state-owned Coal India Ltd (CIL), has set the floor price of each share at Rs.358 for the offer-for-sale (OFS) stated to begin Friday.

The initial number of shares available for trading will be 315,818,220 which will fetch the government about Rs.11,300 crore and an additional number of shares of the same number and pricing will be made available as a greenshoe option thereafter.

The greenshoe mechanism entitles the seller an option to sell additional stakes if there is enough demand.

The coal ministry earlier said that 20 percent of the OFS has been reserved for retail investors.

"Ministry of coal, government of India has submitted to the exchange a copy of announcement with respect to offer for sale through stock exchange mechanism to sell upto 31,58,18,220 with an option to sell an additional upto 31,58,18,220 equity shares of Coal India Limited by ministry of coal, government of India (seller). The floor price for the sale in terms of the OFS Circular shall be Rs.358 per equity share," it told the National Stock Exchange in a filing.

The government currently has 89.65 percent stake in CIL.