The shares will be sold at a floor price of Rs 266, and the sale will be conducted on Wednesday and Thursday, the company said in a filing. The floor price is at a discount of 4% to Tuesday's closing price of Rs 277 on the BSE.
The government has decided to sell up to 186 million shares representing 3% stake in Coal India through an offer for sale (OFS) with a greenshoe option to sell another 6% (372 million shares) to financial institutions and retail investors.
In case the total greenshoe option is exercised the government may be able to raise a minimum of Rs 99 billion. For a total 9% stake, the centre may be able to raise a minimum of Rs 143 billion.
Non-retail investors will be allowed to take part in the OFS on October 31. On November 1, both retail and non-retail investors can take part in the share sale. Retail investors may be allocated shares at a 5% discount to the floor price.
The government of India owns 78.3% in the coal miner, according to shareholding pattern data.
At 09:25 am; Coal India was trading 4% lower at Rs 264 on the BSE, as compared to 0.12% rise in the S&P BSE Sensex. A combined 1.7 million equity shares changed hands on the counter on the BSE and NSE so far.