As of June 1, the offer-for-sale (OFS) for Coal India shares is accessible exclusively to non-retail investors. During this period, non-retail investors can indicate their desire to retain their unallotted bids for allocation on the following trading day (T+1) if the retail category remains undersubscribed. On June 2, the OFS will be open to both retail and non-retail investors.
In Thursday’s trading session, Coal India shares experienced a significant decline, marking the third consecutive session of losses. This drop occurred as the state-owned coal producer initiated a two-day offer-for-sale (OFS). The stock plummeted by 5.03%, reaching a daily low of Rs 229.65, compared to its previous closing price of Rs 241.20.
As part of the government’s plan to divest its stake in public sector undertakings, the Coal India OFS aims to sell up to 3% stake. The floor price for the OFS has been set at Rs 225, which is considerably lower than the recorded low price on the trading day.
Currently, the government holds a 66.20% stake in Coal India.
On June 1, the offer-for-sale (OFS) for Coal India shares was exclusively open to non-retail investors. During this phase, non-retail investors had the option to indicate their willingness to carry forward their unallotted bids to the following trading day (T+1) for allocation, in case the retail category remained unsubscribed. On June 2, the OFS opened for both retail and non-retail investors.
Coal India reserved 10% of the offer shares for allocation to retail investors.
In a separate development, Coal India announced an 8% increase in the prices of non-coking coal. This hike aims to offset 50% of the higher employee costs following a wage hike implemented in January 2023. It is the first significant price increase since January 2018.
Indian equity benchmarks were trading higher in the early session, driven by gains in technology, pharmaceutical, consumer, and metal stocks.
According to Trendlyne data, the stock has an average target price of Rs 254, indicating a potential upside of 10 percent. Additionally, the stock exhibits low volatility with a one-year beta of 0.71.
In other news, Coal India has recently raised prices of non-coking coal by 8 percent. This strategic move is aimed at mitigating 50 percent of the increased employee costs resulting from the wage hike announced in January 2023. It’s worth noting that this is the first significant price hike since January 2018.
Meanwhile, during today’s early trading session, the Indian equity benchmarks displayed upward movement amid a volatile market environment. The positive momentum was primarily driven by gains in technology, pharmaceutical, consumer, and metal stocks.