Govt forms panel for Rs 120b Coal India IPO
Monday, 19 April 2010
NEW DELHI, Apr 18 (PTI): The government has formed an inter-ministerial panel to carry forward the proposed Rs 120-billion disinvestment programme of Coal India, which expects to launch the public offer by July-August this year.
"An Inter-Ministerial Group, comprising Coal Secretary, Disinvestment Secretary and eight other officials from different ministries, has been formed. It was notified Friday," a person in the know of the development said.
The panel would be responsible for selecting book runners-cum-lead managers (BRLMs) to manage the initial public offer (IPO) of the country's largest coal producer and would decide about pricing and timing of the issue, among others.
Paving the way for smooth sail of IPO, the coal giant, Friday last week, took its trade unions on board for disinvestment plan, which is expected to be cleared by the cabinet by this month-end or early May, a senior Coal Ministry official said. The unions were opposed to the sell off.
Coal Minister Sriprakash Jaiswal has said the initial share sale could begin by July-end or early August and could mop up about Rs 100-120 billion.
The government plans to disinvest 10 per cent stake in CIL, of which nine per cent would be channelised through the IPO and the rest would be sold to the company's employees. The centre holds 100 per cent equity in Coal India.
"An Inter-Ministerial Group, comprising Coal Secretary, Disinvestment Secretary and eight other officials from different ministries, has been formed. It was notified Friday," a person in the know of the development said.
The panel would be responsible for selecting book runners-cum-lead managers (BRLMs) to manage the initial public offer (IPO) of the country's largest coal producer and would decide about pricing and timing of the issue, among others.
Paving the way for smooth sail of IPO, the coal giant, Friday last week, took its trade unions on board for disinvestment plan, which is expected to be cleared by the cabinet by this month-end or early May, a senior Coal Ministry official said. The unions were opposed to the sell off.
Coal Minister Sriprakash Jaiswal has said the initial share sale could begin by July-end or early August and could mop up about Rs 100-120 billion.
The government plans to disinvest 10 per cent stake in CIL, of which nine per cent would be channelised through the IPO and the rest would be sold to the company's employees. The centre holds 100 per cent equity in Coal India.