Coal India, which had closed yesterday at Rs.241.20, opened much lower today at Rs.230.50, down 4.5% and went down further to Rs.229.65.
The stock price slipped down after the company announced yesterday that the Govt is proposing to sell up to a 3% stake at a floor price of Rs.225/share.
The Offer for Sale (OFS) is open for retail investors today and non-retail investors tomorrow, June 2.
The company plans to sell 9.24 crore shares, which is 1.5% stake and there is also a green shoe option for selling an equal amount of stake, 1.5%, in case of over subscription.
At yesterday’s closing price of Rs.241.20, the 3% stake sale would be worth around Rs.4400 crore while the floor price has been set at Rs.225/share will fetch Rs.4158 crore.
Prior to that, on 30th June, Coal India approved an 8% price hike for high-grade G2 to G10 coal and said that it expects to achieve incremental revenue of Rs 2,703 crore during the rest of FY24.