Coal India IPO : Files DRHP With SEBI

by khalid on 10/08/2010 · 0 comments

Coal India Limited is the largest coal producing company in the world. The company is a public sector undertaking of the Indian Government. It is involved in coal mining and production industry.The company is a Navratna company of Indian Government. The company has filed a Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) on 9th August 2010 to float its Initial Public Offer (IPO), of the Equity Shares in October 2010. This IPO would be India’s biggest issue, through which the government expects to raise up to Rs 15,000 crore. The company plans to raise money from primary market with an IPO of 631.6 million equity shares of face value Rs 10 each, with a premium decided by the 100% book building process. The issue size of this IPO will be Rs 15,000 crore .

The mega issue of Coal India Limited would hit the market between October 18 and 21. The government is looking to raise between Rs 12,000 crore and Rs 15,000 crore through the share sale, sources said. The Union Cabinet had approved disinvestment of 10 per cent of the government’s holding in CIL. The Centre holds 100 per cent equity in the company.

The Equity Shares are proposed to be listed on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE).

CIL is the sixth public sector unit share sale this year and could account for nearly 40% of the government’s disinvestment target of Rs40,000 crore this fiscal. A successful share sale would beat the 2008 initial public offering (IPO) of Reliance Power Ltd, which mopped up Rs11,700 crore. Still, it will lag behind the $22.1 billion (Rs1.02 trillion today) raised by Agricultural Bank of China and $21.9 billion by its rival Industrial and Commercial Bank of China Ltd.

Book running lead managers to the issue are Citigroup Global Markets India Pvt. Ltd, Deutsche Equities (India) Pvt. Ltd, Bank of America Merrill Lynch, Enam Securities Pvt. Ltd, Kotak Mahindra Capital Co. Ltd and Morgan Stanley India Co. Pvt. Ltd.

Stay tuned to BelltheBull Blog for more on Coal India Limited IPO!

Source : BelltheBull

Related Posts Plugin for WordPress, Blogger...

Leave a Comment

Previous post:

Next post: