Thursday, August 12, 2010

Coal India Filed Papers For Rs 13000 Crore IPO

Kolkata-headquartered public sector undertaking, Coal India Limited, has filed its DRHP with the Securities and Exchange Board for India (SEBI) for an initial public offering. Coal India is likely to hit the capital markets between October 18 and 21, reports CNBC-TV18.

Merchant bankers had earlier estimated the entire valuation of the IPO at USD 30-50 billion.

Coal India files DRHP, IPO likely between Oct 18-21

Partha Bhattacharya, Chairman, Coal India, had in May, said that it will be the largest government IPO till date.

Six investment banks had earlier been short-listed for the IPO. The banks include Citibank, Morgan Stanley, Deutsche Bank, Kotak Mahindra, Enam Securities and DSP Merill Lynch.

Bhattacharya had also said that it may offer 5% discount to retail investors while 1% may be reserved for its employees. He had also said that demat accounts would be made available for employees.

Five public sector undertakings i.e. NTPC, REC, NMDC, Satluj Jal Vidyut Nigam, and Engineers India Limited have hit the capital markets in this fiscal year. The Cabinet Committee on Economic Affairs had in June approved divestment of 10% equity in Coal India and Hindustan Copper in the domestic market through a book building process.

Coal India Ltd, a Navratna, and engaged in production and marketing of coal, has a paid-up capital of Rs 6,316.36 crore. The government owns 100% stake in the company.

Source: moneycontrol.com

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