PSU Stock Falls After the President of India Sells 2% Stake in the Company

Synopsis: The President of India has completed a stake sale in Coal India through an Offer for Sale, reducing shareholding while retaining majority ownership and expanding participation among public investors. 

The shares of this large cap company majorly engaged in mining and production of Coal whose consumers include across various sectors such as cement, fertilizers, brick kilns, power, steel and many more were in focus after the president of India sold stake in the company. 

With the market capitalization of Rs. 2,91,497 Crores, the shares of Coal India Ltd were trading at around Rs. 473 per share which is around 4 percent discount from its 52 weeks high of Rs. 491 per share and is trading at a P/E of 9.3 whereas industry P/E stands at 16.1 

Detailed paragraph

The Government of India, acting through the Ministry of Coal, has completed the sale of a 2 percent  stake in Coal India Limited through an Offer for Sale (OFS) route. The transaction was announced on May 26, 2026, and carried out over May 27–29, 2026. Initially, the government offered to sell 6.16 crore equity shares, representing 1 percent  of Coal India’s paid-up equity capital, with an option to sell an additional 6.16 crore shares (another 1 percent ) under the oversubscription option. 

Following strong investor demand, the entire 12.33 crore shares, equivalent to a 2 percent  stake, were sold. Before the OFS, the government held 389.07 crore shares, accounting for 63.13 percent  ownership in Coal India. After the transaction, its holding declined to 376.75 crore shares, or 61.13 percent  of the company’s equity capital. The sale was conducted through the stock exchange mechanism on both the BSE and NSE, allowing participation from institutional investors, retail investors, eligible employees, and non-retail investors carrying forward unallotted bids. 

Despite the stake sale, the government continues to remain the promoter and majority shareholder of Coal India with a controlling stake of more than 61 percent . The transaction is part of the government’s broader disinvestment and stake monetisation strategy aimed at raising resources while retaining management control over key public sector enterprises. 

About the company and financials

Coal India Limited is the world’s largest coal-producing company and a Maharatna public sector enterprise under the Ministry of Coal. The company accounts for over 80 percent  of India’s domestic coal production and plays a critical role in meeting the country’s energy requirements. It operates through multiple subsidiaries engaged in coal mining across several states. Coal India supplies coal primarily to power, steel, cement and other industrial sectors. With a vast mining network, strong reserves and nationwide presence, the company remains a key contributor to India’s energy security and industrial growth.  

Year on Year analysis: Revenue from operations has increased from Rs. 37,825 Crores to Rs. 46,490 Crores, up 23 percent. Operating profit has increased from Rs. 11,790 Crores to Rs. 12,673 Crores, up 7.4  percent and net profit has increased from Rs. 9593 Crores to Rs. 10,908 Crores, up  13 percent. 

Quarter on Quarter analysis: Revenue from operations has increased from Rs. 34,924 Crores to Rs. 46,490 Crores, up 33 percent. Operating profit has increased from Rs. 9331 Crores to Rs. 12,673 Crores, up 36 percent and net profit has increased from Rs. 7166 Crores to Rs. 10,908 Crores, up 52 percent.  

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