Coal India IPO will be the biggest IPO once the Coal India Ltd. begins to list its equity stocks in the IPO by October 21st and manages to achieve its target of raising Rs. 15,000 crore through the IPO. Coal India’s Chairman Partha S Bhattacharyya has announced that the Coal India IPO will be filed on October 18 and the share sale worth $3 billion will continue until October 21 to add up to the profits.
The current share price band fixed by CIL ranges Rs.225-245 per share. CIL will offer a total of 63.16 crore shares though its IPO.
Coal India (CIL) is known as the largest coal mining firm of the world and is owned by the Union government of India. The company has a global significance with an estimated turnover of Rs. 386.31 billion. After complying with the SEBI (Securities and Exchange Board of India) guidelines, Coal India Ltd, agreed to allow the 10% government share sale. At present, the Indian government holds 100% equity in Coal India.
The book-running lead managers on the Coal India IPO will be major players like Morgan Stanley, DSP Merrill Lynch, Enam Securities, Citigroup Global Markets India, Deutsche Equities (India) Private and Kotak Mahindra Capital.
CIL IPO aims to beat ADAG’s Reliance Power IPO that gained Rs. 11,500 crore profits in the beginning of 2008.
Coal India Ltd. – Fact file
CIL produced 431.26 million tons this year and the company also holds the highest coal reserves in India with an 81.9% coal output share in the Indian province.
Coal India Ltd. owns 471 mines developed in more than 20 coal fields across 8 states in India. The company has expanded around 22 projects out of 45 proposed projects and remaining 23 are in the pipeline.
