Coal India said the government will exercise the oversubscription option in the offer-for-sale amid strong investor interest in the issue. The government will now sell up to 12.32 crore shares, representing 2% of Coal India's total paid-up equity share capital, according to an exchange filing.Institutional investors on Wednesday lapped up Coal India shares, putting in bids worth about Rs 19,000 crore on the first day of the issue. Non-retail or institutional investors subscribed to more than 45.15 crore shares or over 8 times the shares reserved for them at an indicative price of Rs 436.69 per share, much higher than the set floor price.At this indicative price, bids of over 45.15 crore shares amount to around Rs 19,000 crore.The offer size included the base offer of 6.16 crore shares, or 1% stake, along with an additional 1% stake under the oversubscription option. The OFS opened for non-retail investors on May 27, while retail investors, eligible employees and non-retail investors carrying forward unallotted bids can participate on May 29.Indian markets will remain closed on May 28 on account of Bakri-Eid.The share sale is being conducted through a separate window mechanism on the BSE and NSE in line with Sebi guidelines.Out of the total offer size, 10% or around 1.23 crore shares have been reserved for retail investors on the second day of the OFS, subject to valid bids. Additionally, up to 25,000 shares have been reserved for eligible employees of Coal India under the employee reservation category. Eligible employees can bid for shares worth up to Rs 5 lakh.The government currently remains the promoter of Coal India and the stake sale is part of its broader disinvestment and market monetisation programme.The company had reported a steady March quarter performance earlier, with consolidated profit after tax rising 12% year-on-year to Rs 10,908 crore. Revenue from operations during the quarter increased 6% to Rs 46,490 crore, supported by improved realisations and higher other income.Coal India has also remained one of the highest dividend-paying public sector companies, attracting both institutional and retail investors seeking steady cash flows and exposure to the energy sector.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)