Coal India IPO may hit market by October

Coal India IPO may hit market by October

Kolkata: The initial public offer of Coal India, through which the government expects to garner up to Rs12,000 crore, may hit the market in October, union coal minister Sriprakash Jaiswal has said.

“We are monitoring the market closely. However, I hope to complete the divestment by October," union coal minister Sriprakash Jaiswal said during his recent visit to the city.

The minister said that the timing of the IPO will hinge on market conditions, which currently is plagued by sharp volatility in the secondary market and a rather sluggish primary capital market, but the process is expected to be completed by October.

The Cabinet Committee on Economic Affairs has approved disinvestment of 10% in CIL through book-building process in the domestic market.

According to estimates, the stake sale could fetch up to Rs12,000 crore to the government.

However, Jaiswal declined to comment on any expectations on the divestment proceeds.

The government has appointed six merchant bankers — Citigroup, Deutsche Bank, Morgan Stanley, Enam, Kotak Mahindra and DSP Merrill Lynch — for managing the IPO.

The government hopes to exceed its target of Rs40,000 crore for the current fiscal from divestment in PSUs, even though left trade unions like CITU publicly oppose any move of dilution of government stake in the coal major.