Coal India shares to begin trade around November 4

Shares in state-run Coal India, which plans to raise up to $3 billion in what would be the country's largest initial public offering, will begin trading on or around Nov 4, according to a term sheet.

The Coal India offering is the biggest of several share sales in the pipeline for an Indian market enjoying a rally fuelled by foreign fund inflows that have topped $18 billion this year, including more than $5 billion in September alone. 

The 30-share BSE index is up 11 percent this month, its best showing in 16 months.                                           

Proceeds from Coal India's offer, part of the government's plan to divest stakes in roughly 60 companies over the next few years, will be used to help reduce India's fiscal deficit.    

Another state firm, Power Grid Corp, will launch a share sale by the second week of November to raise up to $1.9 billion.                                           

Coal India is selling roughly 631.6 million shares, or 10 percent of the company, and will set a price range on or around Oct 13 before opening order books on Oct 18 and setting the final issue price on or around Oct. 23, according to the term sheet.                                          

Morgan Stanley, Citigroup, Kotak Mahindra Capital, Enam Securities, Deutsche Bank, and Bank of America-Merrill Lynch are the managers on the offering.