Coal India OFS: Allocates 92.44 Lakh Shares to Employee
Coal India, a leading government-owned company, has announced the allocation of 92.44 lakh shares, equivalent to a 0.15% equity stake, to its eligible employees through an offer for sale (OFS). The shares will be sold at a price of ₹226.10 per share.
The employee OFS will be open for subscription from June 21 to June 23, 2023, as per the company’s official statement.
In its filing to the stock exchange, Coal India stated, “On May 31, 2023, the Government of India, as the seller, plans to offer up to 92,44,092 equity shares (representing 0.15% of the total paid-up equity share capital) with a face value of ₹10 each to the eligible employees of the company at a price of ₹226.10 per share.”
As of March 2023, the Government of India held a majority stake of 66.13% in Coal India, while the remaining 33.87% was held by public shareholders.
During the fourth quarter of FY23, Coal India reported a year-on-year decrease of 18% in net profit, amounting to ₹5,527.62 crore. This decline was primarily attributed to increased provisions for wages under the National Coal Wage Agreement XI (NCWA-XI). However, the company highlighted that the provision affected profits and that it would have otherwise recorded the highest-ever profit for any quarter.
Net sales for the same quarter witnessed a 17% increase, reaching ₹35,161 crore compared to ₹29,985 crore in Q4FY22.
For the full fiscal year 2022-2023, Coal India achieved a remarkable 62% growth in net profit, reaching an all-time high of ₹28,125 crore, up from ₹17,378 crore in the previous year. The company attributed this impressive performance to higher volume sales and increased premiums in e-auctions.
Over the past year, Coal India shares have experienced a significant rally, rising by more than 24%. As of 11:50 am, the company’s shares were trading at ₹227.20 apiece on the BSE, reflecting a slight decline of 0.53%.
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About Coal India:
Coal India Limited is an Indian government-owned company that operates under the Ministry of Coal, which is part of the Government of India. Its headquarters are located in Kolkata. It holds the distinction of being the largest producer of coal owned by the government globally. Moreover, it ranks as the seventh largest employer in India, employing approximately 272,000 individuals.
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