State-run Coal India (CIL) today said it will file papers with market regulator the Securities and Exchange Board of India (Sebi) for its initial public offer (IPO) by June 15.
The company also said it is examining five investment proposals worth $1 billion (about Rs 4,500 crore) from two companies to buy stakes in overseas assets.
"CIL will file draft red herring prospectus (DRHP) with the Sebi by June 15 subject to approval by the government. The disinvestment should happen by end-July or August this year," CIL Chairman Partha S Bhattacharyya told reporters here.
At present, the government holds 100 per cent stake in the country's largest coal producer and the disinvestment through IPO is part of the UPA government's plans to raise up to Rs 40,000 crore in the next fiscal.
Earlier this month, the Sebi had allowed the coal major to offer shares to its 4 lakh employees, including that of its seven subsidiaries.
On Coal India's overseas plans, Bhattacharyya said the PSU is carrying out due diligence on five proposals from two companies, including the US's biggest coal company Peabody Energy Corp, to jointly buy stake in global ventures.
"The total investment proposals from these companies is about $1 billion," Bhattacharyya said adding, the company is examining the proposals.
The PSU had floated global bids in July last year inviting players to parter with it for joint ventures in coal mining abroad, including that in the US, Australia, Indonesia and South Africa.
It had received about 17 proposals from companies, including from Peabody.
The CIL chairman last month had said that the PSU may invest about $2 billion over the next four years to buy stakes in overseas assets.
It had acquired two blocks last year in Mozambique with estimated reserves of 1 billion tonnes.
The state-owned coal giant accounts for about 75 per cent of the country's dry fuel production. It had set coal production target of 435 million tonnes for this ongoing fiscal, an increase of 7.5 per cent over the previous year.
CIL had earmarked a capital expenditure plan of Rs 3,200 crore to meet its increased production target.
