Coal India investors can withdraw bids up to October 25

Coal India investors can withdraw bids up to October 25
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First Published: Thu, Oct 21 2010. 01 42 PM IST
Updated: Thu, Oct 21 2010. 01 42 PM IST
Mumbai: Those who have invested in Coal India Ltd’s Rs15,000 crore public float will get a five-day window if they wish to withdraw their applications in India’s biggest ever initial public offer (IPO). Investors can withdraw their bids because there has been a mistatement in Coal India’s financials.
Investors will be able to withdraw their bids till the end of Monday, 25 October.
S. Subramanian, head - investment banking, Enam Securities Ltd, one of the merchant bankers handling the IPO, said: “The withdrawal option has been given because of a small clerical error in the financial statements of Coal India. The statements have interchanged other income with closing stock. This has led to some difference in numbers.We have issued a corrigendum. Hence, this withdrawal option.”
Investment bankers are responsible for due diligence of the prospectus. In recent past, two other firms had to open such an window because of errors in prospectus. .
The capital market regulator has asked these firms to allow investors withdraw their applications.
Investors fear that this could push the listing cycle beyond the originally projected 12 days from closure of offer.
“There are some minor mistake in the (statements). If there are huge withdrawals, then we may have a problem. But we do not expect this,” said M.V. Ramnarayanan, LINK Intime Ltd, the share registry of Coal india.
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First Published: Thu, Oct 21 2010. 01 42 PM IST