The government's offer-for-sale (OFS) for up to 3 per cent stake in Coal India got over-subscribed by institutional investors on Thursday in post-noon trade.

As against 8.31 crore shares of offer, investors have put in bids for 8.74 crore shares, representing 105.04 per cent of the offer size reserved for them, at 1320 hours. Bidding will continue till close of market hours.

In the two-day OFS, the government is selling over 18.48 crore shares or 3 per cent in the PSU coal producer at a floor price of Rs 225 a share. The sale includes a green-shoe option of 1.5 per cent in case of over subscription.

Bidding for retail investors will begin on Friday.

In the secondary market, shares of Coal India are trading at Rs 229.60, down 4.81 per cent over Wednesday's closing price.

Coal India will be the first Public Sector Undertaking (PSU) stake sale in the current fiscal.

If fully subscribed, a 3 per cent stake would fetch over Rs 4,000 crore for the government.

The floor price of Rs 225 was set at a 6.7 per cent discount over Wednesday's closing price of CIL.

The government currently holds 66.13 per cent in CIL.

Stake sale in Coal India will help the government inch towards the Rs 51,000-crore disinvestment target set for the current fiscal.

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