Coal India slips 4% as Govt to sell 3% stake in firm through OFS route

Coal India share price NSE:  Shares of Coal India (CIL) slipped on June 1, Thursday, a day after the government proposed to sell up to a three per cent stake in the public sector undertaking through the Offer for Sale (OFS) route. The stock finished at Rs 230, down by 4.66 per cent or Rs 11.25 on NSE.

The Offer for Sale (OFS) will be open for retail and non-retail investors on June 1 and 2. The proposal is to offload 9.24 crore shares amounting to a stake of 1.5 per cent in the coal producer. Besides, there will be a green shoe option for selling an equal amount of stake in case of over-subscription, according to a regulatory filing. READ MORE

On Wednesday (May 31) too, Coal India shares were in focus after the central public sector undertaking announced the revision of non-coking coal prices with effect from May 31, Wednesday. The company, in a regulatory filing, informed that its board has approved a price increase of 8 per cent over the existing notified prices for high-grade coal of grades G2 to G10. The company has taken the price hike after five years, as per Zee Business Research.

In FY 2022–23, the total volumes from coal grade 2 to coal grade 10 (G2–G10) stood at 20 per cent.

Coal India's target price

CLSA has maintained a "buy" rating on the stock. However, it has cut the target price from Rs 280 to Rs 277. JP Morgan has assigned "overweight" to the stock with a target price of Rs 290.

Coal India shares: Historical performance

Coal India's stock has given a positive return of over 17 per cent in the last 12 months (from June 1, 2022). In comparison, the headline index Nifty 50 has rallied nearly over 12 per cent.

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