New Delhi, May 31 (IANS): The government proposes to offload 3 per cent stake in Coal India Limited (CIL) through the offer for sale (OFS) route.

The offer will open on June 1 for non-retail investors, while retail investors can bid for it on June 2.

The divestment of Centre's 3 per cent equity also includes a Green Shoe option of 1.5 per cent.

The size of the OFS is around Rs 4,000 crore, and its floor price is set at Rs 225 per share. This is at a discount of nearly 7 per cent from Coal India's current market price.

The proposal is to offload 9.24 crore shares amounting to a stake of 1.5 per cent in the coal producer.

Besides, there will be a green shoe option for selling an equal amount of stake in case of over subscription, CIL said in a regulatory filing.

Under the OFS route, promoters in public companies can sell their shares and reduce their holdings in a transparent manner through the bidding platform for the exchanges.