New Delhi [India], June 1 : The Offer for Sale in Coal India received a good response from non-retail investors on Thursday.
The issue was subscribed 3.46 times the base size, the Department of Investment and Public Asset Management tweeted.
Retail investors will be able to bid for the OFS on Friday.
"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," DIPAM wrote on Twitter.
The government has decided to divest 3 per cent equity including a green shoe option of 1.5 per cent. The floor price for the two-day issue has been fixed at Rs 225 per share.
In a stock exchange filing on Wednesday, Coal India said the government will offload 9.24 crore shares or 1.5 per cent in the company. Besides, there will be an option for selling an equal amount of stake in case of over-subscription.
Offer for Sale means the promoters (owners) selling their shares to raise additional funds for the company.
This stake sale is the government's first sale in a public sector company in the current financial year 2023-24.
The disinvestment is expected to fetch about Rs 4,158 crore for the exchequer.
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