CIL's Rs 120b IPO to depend on market conditions
Thursday, 3 June 2010
NEW DELHI, June 2 (Reuters): Indicating that the initial public offering (IPO) for Coal India Limited (CIL) could be postponed beyond August, the government today said that it will wait for good market conditions to launch it.
"We had planned to bring the CIL IPO by July or August. But it could come in September also. We will bring the issue when conditions are good," Coal Minister Sriprakash Jaiswal told reporters here.
"Coal India will file its DRHP (draft red herring prospectus) by the month-end. We will definitely bring the CIL IPO," Jaiswal added.
Jaiswal had earlier said that the government could mop up over Rs 120 billion through the CIL issue.
The government is looking at divesting 10 per cent of its equity through the IPO. At present, the centre owns 100 per cent equity in CIL.
The Union Cabinet is yet to clear the proposal. Some Left-wing trade unions have also been opposing the proposed sell-off.
On using imported coal prices as the benchmark for domestic coal, the minister said, "We have no such plans (as of now)."
However, Jaiswal had said last week that "in the recent price revision exercise, efforts have been made to price higher grades of non-coking coal of Eastern Coalfield Ltd closer to import parity price...it needs to be carried further."
"We had planned to bring the CIL IPO by July or August. But it could come in September also. We will bring the issue when conditions are good," Coal Minister Sriprakash Jaiswal told reporters here.
"Coal India will file its DRHP (draft red herring prospectus) by the month-end. We will definitely bring the CIL IPO," Jaiswal added.
Jaiswal had earlier said that the government could mop up over Rs 120 billion through the CIL issue.
The government is looking at divesting 10 per cent of its equity through the IPO. At present, the centre owns 100 per cent equity in CIL.
The Union Cabinet is yet to clear the proposal. Some Left-wing trade unions have also been opposing the proposed sell-off.
On using imported coal prices as the benchmark for domestic coal, the minister said, "We have no such plans (as of now)."
However, Jaiswal had said last week that "in the recent price revision exercise, efforts have been made to price higher grades of non-coking coal of Eastern Coalfield Ltd closer to import parity price...it needs to be carried further."