Coal India OFS day 1: Government stake sale gets good response from non retail investors; oversubscribed 106%

Coal India OFS Day 1: The three percent stake sale of the government in Coal India Limited (CIL) received a robust response from the non-retail investors on the first day of the offer for sale (OFS). The institutional investors bid for shares worth more than Rs 4,200 crore, over-subscribing the quota reserved for them on the opening day today. The two-day OFS will open for non-institutional or retail investors on Thursday.

In the current fiscal, it is the first big sale and OFS of the government which if fully subscribed will fetch Rs 5,000 crore to the exchequer.

Of the 14.89 crore share on offer, institutional investors put in bids for 15.84 crore. This is 1.06 times the shares reserved for institutional buyers, according to NSE data. At the floor price of Rs 266, the sale of 15.84 crore shares will amount to more than Rs 4,200 crore.

Coal India shares plunged to a low of Rs 266 a piece (down 3.57 percent) during intra-day trade. The government can also retain an over-subscription of additional six per cent stake in the PSU OFS through a green shoe option.

Meanwhile, the Sensex sjumped 550.92 points or 1.63 percent to end the day at 34,442.05 points. The BSE market breadth was bullish with 1,613 advances and 941 declines. The Nifty ended at 10,386.60 points, up 188.20 points or 1.85 percent. The Nifty Bank index closed trade 1.39 percent higher. Tech Mahindra, Indiabulls Housing Finance, HDFC, HCL Technologies, and UPL were the top gainers on the Nifty.

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