The government intends to sell a 3% stake in Coal India Limited (CIL) through an offer for sale (OFS). Non-retail investors can bid on the offer on June 1, while retail investors can bid on it on June 2.

The divestment of the Centre's 3% equity includes a 1.5 percent Green Shoe option. The OFS is worth approximately Rs 4,000 crore, with a floor price of Rs 225 per share. This represents a nearly 7% discount from Coal India's current market price.

The proposal is to sell 9.24 crore shares, representing a 1.5 percent stake in the coal producer. In addition, CIL stated in a regulatory filing that there will be a green shoe option for selling an equal amount of stake in the event of over-subscription.

Promoters in public companies can use the OFS route to sell their shares and reduce their holdings in a transparent manner via the exchange's bidding platform.