Coal India Ltd.

The Government of India has successfully offloaded 10% stake in Coal India (CIL) to raise around Rs 22,400 crore recording the highest-ever divestment proceeds in a year. The 631-million-share offer for sale (OFS) saw a total of 675 million bids at an indicative price of Rs 358.5 a share slightly higher than the floor price of Rs 358 set by the government.

Foreign investors including Capital World Investors and BlackRock bid for nearly a quarter of the total shares on offer, while the country’s largest insurer Life Insurance Corporation (LIC) was the biggest investor, with investment of around Rs 8,000 crore. Other state-owned institutions, including General Insurance Corporation (GIC) and State Bank of India (SBI), put in another Rs 1,000 crore worth of applications. About Rs 11,360.13 crore worth of shares were purchased by insurers; retail investors bought Rs 1,852.55 crore; mutual funds purchased Rs 603.11 crore; foreign institutional investors and banks purchased Rs 8,485.65 crore of which FIIs alone, led by Capital International, bought Rs 6,000 crore worth of shares.

Besides, bids worth over Rs 2,000 crore were received from small investors (those investing up to Rs 2 lakh). However, the retail portion was subscribed around 44%. The unsubscribed shares in the retail category will be allotted to non-retail investors, the demand from whom was 1.23 times more than the shares on offer.