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%.
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.
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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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