New Delhi: State-owned Coal India (CIL) is likely to file a draft prospectus next week for its initial public offering (IPO), billed to be India's biggest issue, through which the government expects to raise about Rs15,000 crore, reports PTI.
"The company's board is meeting on 5th August to finalise the draft red herring prospectus (DRHP) and in all probability, papers will be filed with market regulator Securities and Exchange Board of India (SEBI) within the first week of August," a person in-the-know of the development told PTI today.
Last month, the Union Cabinet had cleared the proposal to divest 10% of the government's stake in the world's largest coal miner through an IPO. The Centre holds 100% equity in the company.
Earlier, coal minister Sriprakash Jaiswal had said the share sale could be launched in October, terming the month "auspicious", as it coincides with the Durga Puja celebrations.
Sources said the IPO is expected to be launched on 18th October and will close on 21st October. The government is looking to raise between Rs12,000 crore to Rs15,000 crore through the share sale.
Although CIL's IPO was originally planned for August-September, it was delayed due to opposition from trade unions and political parties to the government's proposed 10% stake sale.
Coal India produced 431.5 million tonnes of coal in the last fiscal. The country's coal output stood at 531.5 million tonnes in 2009-10. The company is one of the cheapest suppliers of the raw material in the world, selling its coal at 50% cheaper rates than its global rivals.
Anil Ambani Group firm Reliance Power's (R-Power) IPO in January, 2008, is the biggest IPO in India so far. R-Power had raised Rs11,500 crore through its IPO.
The government aims to raise Rs40,000 crore through disinvestment of PSUs this fiscal.
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