COAL INDIA largest IPO of Rs 15,000 cr

State-run Coal India is likely to hit the market by the third week of October with India's largest ever public offer to raise up to Rs 15,000 crore.

The government is disinvesting 10 per cent of its stake in Coal India (CIL), the world's largest coal miner, through the IPO.

"As of now, it seems that CIL initial public offer will open on October 18 and closes on October 21. The 10 per cent disinvestment will see the government raising Rs 12,000- 15,000 crore," a person in the know of the development told PTI.

Coal ministry may cancel two linkages

The blue-print of the IPO was finalised last evening at a meeting between Finance Minister Pranab Mukherjee and Coal Minister Sriprakash Jaiswal. The meeting was also attended by Additional Secretary Coal Alok Perti and Department of Disinvestment Secretary Sumit Bose and Coal India Chairman P S Bhattacharyya, the source said.

Coal India, the largest global coal miner, sells the dry fuel 50 per cent cheaper at around USD 25 a tonne than the prices prevailing in the international market.

Although CIL's IPO was planned in August-September, it was delayed due to opposition to the government's 10 per cent stake sale move from trade unions and political parties.

 
CIL profit jumps 300%

"The Department of Disinvestment has finalised the issue date. The company will now file the Draft Red Herring Prospectus of the IPO by the first week of August," the source added.

The government is selling 10 per cent of its stake in CIL disinvestment. It currently holds 100 per cent equity in the coal major. CIL had earlier said it will issue over 63 crore shares in the IPO.

The Union Cabinet had last month approved to disinvest 10 per cent of the government's holding in CIL. The Centre holds 100 per cent equity in the company.

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.

Anil Dhirubhai Ambani Group firm Reliance Power, in January 2008, raised Rs 11,500 crore through IPO -- the biggest in India till date.

Aiming to raise Rs 40,000 crore through disinvestment in this fiscal, so far sell off in Satluj Jal Vidyut Nigam has fetched the exchequer over Rs 1,000 crore. The government is likely to sell its stake in 10 PSUs, including MMTC, SAIL and Hindustan Copper, this fiscal.

The government in 2009-10 had raised Rs 25,000 crore through stake sales in Oil India, NMDC, REC and NTPC. NMDC 8.38 per cent stake sale had fetched the government about Rs 10,000 crore.

CCEA approves disinvestment in Hindustan Copper Ltd. and Coal India Ltd.

The Cabinet Committee of Economic Affairs (CCEA) today approved disinvestment in Coal India (CIL) and Hindustan Copper Ltd. (HCL). The Cabinet has approved 10% government stake sale in Coal India. In case of Hindustan Copper, the Cabinet has decided to disinvest through 10% fresh equity sale.

FPO of Hindustan Copper is likely to come in the market in the month of September this year. Hindustan Copper is in the process of appointing merchant banker for the same.

Government is going to raise Rs 40,000 crore from disinvestment in this year. The said stake sale is a part of government’s disinvestment strategy.

The government is planning to sell its stake in 10 companies, including MMTC, CIL, SAIL and RINL this fiscal. Last fiscal, it had raised Rs 25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.

Hindustan Copper is currently quoting at Rs 519.15 which is 10.47% higher than previous close. Its share price has managed to hit intraday high of Rs 537 and low of Rs 471. Total traded quantity of shares of Hindustan Copper is 4,393,633 on NSE at 11.46 hrs IST.

Hindustan Copper is a public sector enterprise. Government owns 99.59% in Hindustan Copper. This is the only company which encompasses mining, beneficiation, smelting, refining and casting of refined copper metal.

Coal India is the leader in Indian coal sector. It is largest coal producing company in the world. Its operations are spread in 81 mining areas and it owns 7 wholly owned coal producing subsidiaries.