State-run mining major Coal India (CIL) is likely to undertake its initial public offering (IPO) by August 10. This emerged from a meeting on Friday where CIL, along with officials from the coal ministry and the Department of Disinvestment, met the market regulator, Securities and Exchange Board of India (Sebi), to chart out a blueprint for the listing process.
“A tentative timeline has been discussed. The DRHP (draft red herring prospectus) should be filed by the end of June and the issue should open by August 10,” CIL Chairman Partha S Bhattacharyya said.
The government, which holds a 100 per cent stake in the country’s largest coal miner, is likely to offload about 10 per cent to the public.
It is understood the exact figure is subject to Cabinet approval.
A certain amount of shares are also expected to be offered to the employees.
However, this has led to some legal complications as, currently, the employees of subsidiary companies cannot be given shares through the employee stock ownership plan (Esop) route.