Coal India Shares Drop 3% as Government Plans Rs 10,000-Crore Stake Sale via OFS

Shares of Coal India experienced a 3% decline on Thursday, following reports from CNBC-TV18 indicating that the central government is considering divesting a 3-4% stake in the public sector unit, valued at nearly Rs 10,000 crore, through the offer for sale (OFS) mechanism. The proposed sale is likely to be offered at a discount to the current market price to attract investors. However, both Coal India and the Department of Investment and Public Asset Management (DIPAM) have yet to confirm this development, and The Economic Times has not been able to independently verify the claims. This uncertainty has impacted investor sentiment, contributing to the share price drop.

As of March 31, 2026, the government remains the majority stakeholder in Coal India, with more than a 63% ownership. Among public investors, mutual funds and alternative investment funds collectively held a 9.5% stake, while insurance companies like the Life Insurance Corporation (LIC) accounted for roughly 12%. Notably, LIC itself holds over 11% of Coal India’s shares, solidifying its position as one of the largest institutional shareholders. Foreign investors and retail investors have also maintained respective stakes of over 8% and around 4%, which reflects a diverse ownership structure that could potentially be affected by the impending stake sale.

Despite the recent downturn, Coal India shares have seen a significant uptrend in the longer term, showing a 14% increase year-to-date and a substantial 20% rise over the past year, amidst a market capitalization of over Rs 2.82 lakh crore. The company’s financial performance for the January-March quarter of FY26 has been robust, with a net profit increase of 12% year-on-year to Rs 10,908 crore and a 6% growth in revenue from operations to Rs 46,490 crore. Notably, EBITDA grew 12%, and profit margins improved from 36% to 39%, signaling effective operational efficiency even as sales volumes remained relatively flat. Investors may want to closely monitor upcoming announcements regarding the government’s divestment plans, as this could significantly influence market dynamics for Coal India.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)