Coal India has recently announced an employee offer for sale (OFS) in which it will sell more than 92 lakh equity shares from June 21 to June 23, with an expected fundraising of approximately Rs 209 crore.
This OFS is equivalent to 0.15 per cent of the company’s overall paid-up equity.
During this OFS, eligible employees will be allowed to purchase up to 92,44,092 equity shares at Rs 226.10 per share, each having a face value of Rs 10. The aim behind this move is to involve the company’s workforce in its growth and overall success.
The government sold 18.48 crore equity shares of Coal India through employee OFS on June 1 and 2, representing a three per cent stake, and generated approximately Rs 4,185 crore from it.
Currently, the government holds a majority stake of 66.13 per cent in Coal India and has targeted to disinvest Rs 51,000 crore this year, which it aims to achieve by selling these stakes.
However, Coal India faced a setback in its financial performance in the fourth quarter ending on March 31, 2023. The company experienced a decline of nearly 18 per cent in consolidated net profit, of Rs 5,528 crore. This decline is attributed to increased expenses due to wage hikes.
On a positive note, the company’s revenue from operations showcased growth of 17 per cent during the same period, reaching Rs 38,152 crore.