Shares of Coal India were trading in the red on Monday after the company said it would sell nearly 1 crore shares to its employees via its second offer for sale (OFS) this month.
What Happened? The government plans to sell 92.44 lakh shares of Coal India, representing a 0.15% equity stake, to eligible employees through an OFS. The employee OFS will be open from June 21 to June 23, with each share priced at ₹226.10, a discount from the stock’s last closing price of 228.55 on Friday.
In an earlier OFS this month, the government raised ₹4,185 crore by selling a 3% stake in Coal India, resulting in its ownership declining to 63.13%.
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Coal India recorded a consolidated net profit of ₹5,527.62 crore for the March quarter of FY23, down 17.7% from the previous year. Consolidated revenue for the quarter reached ₹35,161.44 crore, marking a 17.3% year-on-year increase.
As the largest supplier of thermal coal to the power sector, Coal India meets around 75-80% of the sector’s fuel requirements. The company anticipates increased coal demand driven by rising power needs for rural electrification.
It was reported earlier this month that Coal India was facing opposition from locals in Chhattisgarh against a planned mine expansion for Asia's biggest coal mine.
Coal India’s shares have gained 1% this year, with a one-year return of over 28%.
Price Action: Coal India’s share price was down 0.68% to trade at ₹227 in the late hours of trading on Monday.
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