Coal India OFS opens for retail investors; shares extend fall

Coal India’s stock fell for the fourth straight session as the OFS opened for retail investors under the green-shoe option, with cuts at Rs 230, down 0.26%. The OFS for up to 3% stake in Coal India was oversubscribed by the non-retail category by a massive 346% on Thursday and expected to raise Rs 4,200 crore for the government. However, Santosh Meena, Head of Research at Swastika Investmart, recommended investors to consider participating in this OFS as the downside risk is limited at around Rs 225 level and the floor price for the offer has been fixed at Rs 225, a 6.7% discount to Wednesday’s closing price of Rs 241.20.