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| Edited By: Pooja Sarkar |Source: DNA |Updated: Mar 17, 2018, 04:12 AM IST
Coal India’s (CIL) planned initial public offering, through which the world’s largest coal miner was seeking to raise approximately Rs 12,500 crore, has been delayed till at least September.
A senior official with the public sector undertaking who did not wish to be identified admitted to the delay.
“It is true that the listing will be delayed a little and will not happen in July-end as we had thought. We are awaiting government approval. There could be some reasons why it is not yet passed muster,” the official said.
“Even if the approval comes today (Monday, June 1), we can’t do the listing in July as we have to file the DRHP (draft red herring prospectus), get Sebi approval, do our roadshows with bankers and many a things. So now everything depends upon the Cabinet approval… Once it comes, we can give a zero date for listing.”
CIL has hired DSP Merrill Lynch, Citigroup, Deutsche Bank, Morgan Stanley, Kotak Investment Banking and Enam Securities for its listing. The DRHP was supposed to be filed next month.
Partha Bhattacharya, chairman, CIL, had earlier told DNA, “Given the kind of valuations being talked about by the book running lead managers, the company’s valuation is about $40 billion. So 10% should be around $4 billion.”
The government proposes to divest 10% stake through an issue of 63.13 crore shares. 1% of the issue size is reserved for employees of CIL and its eight subsidiaries. Retail investors will get a 5% discount on the issue price.
