Highlights
- Coal India shares declined nearly 5% after the government announced a 2% OFS.
- The Ministry of Coal set the OFS floor price at INR 412 per share.
- Coal India stated that 168 MT coal stock remains available across the supply chain.
Coal India Limited (NSE:COALINDIA) shares declined sharply in early trade on May 27, 2026, after the Government of India announced an Offer for Sale (OFS) through the stock exchange mechanism. Coal India stock traded at INR 436.80, down 4.66% from the previous close of INR 458.15. The Ministry of Coal said the President of India, acting through the ministry, plans to sell up to 61.62 million equity shares representing 1% of Coal India’s paid-up equity capital.
The government also retained an oversubscription option to sell an additional 61.62 million shares, taking the total potential OFS size to 2%. The OFS opens for non-retail investors on May 27, while retail investors and eligible employees can bid on May 29.
Source: TradingView
Floor Price Set At INR 412 Per Share
The government fixed the OFS floor price at INR 412 per equity share. The offer is being conducted through both BSE Limited and National Stock Exchange of India Limited.
As part of the OFS structure, 10% of the offer shares are reserved for retail investors. Up to 25,000 shares may also be allocated to eligible employees under a separate employee category.
The government said the OFS is being undertaken in line with SEBI guidelines applicable to companies with market capitalization above INR 1,000 crore.
Coal Availability Remains In Focus
Separately, Coal India released a statement addressing concerns around coal supply availability during the summer demand period.
The company said total coal availability across the system stands at 168 million tonnes. This includes 47.6 MT of coal stock at domestic coal-based power plants, 113.5 MT inventory at Coal India mine heads, nearly 3 MT at transit points, and around 4 MT of coal currently in transit through railway movement.
Coal India added that around 50 MT of in-situ mine coal remains available for quicker extraction if demand increases further.
According to the company, coal stock compression at thermal plants during peak summer is a seasonal occurrence and not necessarily linked to supply disruptions.
Source: Analysis by Kalkine
Government Stake Sale Keeps Market Attention High
The OFS announcement comes as investors continue tracking government divestment activity in public sector companies. Market participants typically monitor OFS pricing, institutional demand, and potential impact on near-term share supply.
Coal India shares opened at INR 429.00 on the NSE and traded between an intraday high of INR 434.60 and a low of INR 428.40 during early trading hours.
The stock remains part of India’s public sector energy and mining segment, with investors also monitoring coal demand trends and thermal power generation requirements.
Key Risks To Watch
- Further OFS-related selling pressure may impact near-term stock sentiment.
- Coal demand fluctuations could affect dispatch and inventory trends.
- Logistics disruptions may impact coal transportation to power plants.
- Regulatory or environmental policy changes could influence mining operations.
Summary
Coal India (NSE:COALINDIA) shares fell after the Government of India announced a 2% OFS with a floor price of INR 412 per share. The offer opens for institutional investors on May 27 and retail investors on May 29. Separately, Coal India stated that total coal availability in the system stands at 168 MT, aiming to address concerns around summer coal supply and thermal power demand.
FAQs
Q: Why did Coal India shares decline on May 27, 2026?
A: Shares declined after the government announced a 2% Offer for Sale through stock exchanges.
Q: What is the floor price for Coal India’s OFS?
A: The government fixed the OFS floor price at INR 412 per equity share.
Q: What did Coal India say about coal supply availability?
A: Coal India said 168 MT of coal remains available across mines, plants, transit points, and rail movement.