State owned Coal India Limited (CIL), the world's single largest producer of coal, which is set to come out with the country's largest Initial Public Offer (IPO) of around Rs 14,000 crore on October 18, is currently conducting roadshows in major international locations to pull global investors.
The roadshows are also aimed at positioning CIL as a company of international standards. CIL which is a mining behemoth in the domestic market, was keen on gaining a strong foothold globally through strategic tie-ups with internationally reputed coal miners.
The navratna coal company has already held roadshows on its forthcoming IPO in Sydney, Hong Kong and Singapore. A high-profile CIL delegation of the company led by its chairman Partha S Bhattacharyya, is presently in London to promote the company's IPO in a big way.
"Our international roadshows are aimed at pulling global investors for the company's IPO. We are also showcasing CIL as a global coal mining company. CIL has already held roadshows in locations like Sydney, Hong Kong and Singapore. Presently, we are doing a roadshow in London and from here, we move to other prominent international locations like New York and Los Angeles for staging roadshows”, Bhattacharyya told Business Standard over the phone.
The CIL IPO which is scheduled to hit the capital markets on October 18 wil continue till October 21. The Government of India is offloading 10 per cent equity in the company. As many as 632 million shares will be offered through the IPO.
One per cent of the offer, which will be through the 100 per cent book building process, will be reserved for the four lakh odd employees of CIL and its eight subsidiaries.
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CIL had filed the Draft Red Herring Prospectus (DRHP) with the market regulator- Securities and Exchange Board of India (Sebi). According to the DRHP filed with Sebi, Coal India had a consolidated income of Rs 52,592.30 crore and a consolidated profit after tax of Rs 9,829.41 crore (as on March 31 this year). The company’s net worth was Rs 25,843.74 crore.
The company had appointed six merchant bankers- Citibank, Deutsche Bank, DSP Merill Lynch, Morgan Stanley , Enam Securities and Kotak Securities have been appointed to act as Book Running Lead Managers (BRLMs) for its IPO.
CRISIL, one of India's top credit rating agencies had recently assigned a grade of 5/5 to the CIL IPO, indicating robust fundamentals of the company.
Post the listing, CIL will be eligible for the 'Maharatna' status of the Government of India which will allow the board of the company to clear investment proposals of up to Rs 5000 crore. Being a navratna company, CIL board can presently clear investments up to Rs 1000 crore.CIL produced 431 million tonnes of coal in 2009-10, accounting for over 80 per cent of the country's coal.