Government Trims Stake in Coal India: 2% Equity Sold via Offer for Sale
In a significant regulatory filing on June 1, 2026, the Government of India announced the successful completion of a stake sale in Coal India Limited (CIL). Acting through the Ministry of Coal, the Government has divested a 2.00% stake in the mining giant through an Offer for Sale (OFS) mechanism.
Key Details of the Transaction
The sale involved a massive block of shares executed over two trading days, designated as T day and T+1 day, specifically from May 27, 2026, to May 29, 2026.
Here is a breakdown of the numbers:
- Total Shares Sold: 123,279,566 equity shares.
- Percentage Sold: 2.00% of the company’s total share capital.
- Mode of Sale: Conducted through the stock exchange mechanism (BSE and NSE) in accordance with SEBI’s comprehensive guidelines for Offers for Sale.
Impact on Government Holding
Prior to this disposal, the President of India held a 63.13% stake in Coal India, representing 3,890,735,938 shares. Following the completion of this 2% sale, the Government’s total holding has been reduced to 61.13%, or 3,767,456,372 shares. Despite this reduction, the Government remains the clear Promoter of the company.
Inclusive Participation: The Employee Offer
Beyond the institutional and retail portions of the OFS, the transaction also includes an Employee Offer. In line with SEBI guidelines, a portion of the equity—up to 25,000 shares—was set aside to be offered to eligible employees of Coal India Limited.
Regulatory Compliance
This disclosure was made under Regulation 29 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The Ministry of Coal confirmed that the notification was filed within the required two working days following the closure of the Offer for Sale transaction.
This move is part of the Government’s ongoing management of its investment portfolio in public sector undertakings, ensuring that while it maintains promoter control, it also provides liquidity and investment opportunities in the open market.