Maharatna PSU Stock Surges From ₹146 to ₹427; Now Available at 10% Discount

Maharatna PSU: The government has decided to sell a portion of its holdings in Coal India Limited through an offer for sale (OFS). This will provide a new short-term opportunity for investors looking at large-cap public sector stocks. This move comes at a time when the stock has already seen strong long-term gains, and the new offer is being priced at a significant discount to recent market levels.

In a new announcement made on Tuesday evening, the government confirmed that it will sell up to 2% of its stake in Coal India through the OFS route. The base offer comprises 61.6 million shares, equivalent to approximately 1% of the equity, while an additional 61.6 million shares can be added through oversubscription, taking the total to 123.2 million shares.

At a floor price of ₹412, selling the entire 2% stake could fetch the government over ₹5,000 crore, making it a major disinvestment move in the public sector space. The government’s current holding in the company remains strong, exceeding 63% until March 31, 2026, ensuring Coal India remains firmly under majority public ownership even after the sale.

The OFS floor price has been set at ₹412 per share, while the stock closed at ₹458.25 on the previous trading day. This difference represents a discount of approximately 10%, generating immediate interest from traders and short-term investors looking for entry opportunities at lower levels.

However, the market reaction on Wednesday showed some pressure at the opening. The stock fell more than 6% to around ₹427.80 as investors adjusted positions around the discounted offer. News of a separate block deal involving approximately 1.6 million shares also surfaced in early trade, increasing activity and volatility.

The OFS process is scheduled to be conducted in multiple stages, beginning with non-retail investors on May 27th. Retail investors will gain access later on May 29th, while May 28th is a stock market holiday due to Bakrid. This phased structure allows different categories of investors to participate in different windows, which is standard practice in such government stake sales.

The timing of the offer has also drawn attention as it comes after a long period of strong performance for the stock, making both pricing and demand important factors for investors considering participation.

Coal India Stock Performance

Despite short-term fluctuations, Coal India has delivered strong returns over time. Over the past five years, the stock has gained nearly 200%, rising from approximately ₹146.85 in May 2021 to approximately ₹427.80 in May 2026. In the past six months alone, the stock has gained approximately 14%, demonstrating consistent upward momentum.

Over the past year, the stock has also traded in a wide range, with a 52-week high of ₹490.90 and a low of ₹368.55, reflecting both growth and volatility in line with broader energy market trends.

Overall, OFS has brought renewed focus to Coal India as investors are leveraging the benefits of a discounted entry level compared to short-term price fluctuations due to supply disruptions from the government stake sale.