State-run Coal India Ltd (CIL), along with the coal ministry and the Department of Divestment, will meet market regulator Sebi on February 19 to chart out the blueprint for the initial public offering (IPO) of the coal behemoth.
“The major agenda of the meeting will be to create a roadmap (for the IPO) and to sort out some ticklish issues,” said CIL Chairman Partha S Bhattacharyya. He added, “There are certain legal issues that need to be dealt with, such as offering shares to employees of subsidiaries. We have to remain within the legal structures.”
It is understood that CIL intends to offer a certain number of shares to the employees of its seven subsidiary companies. However, there are some legal complications for undertaking this.
It is likely that about 1 per cent of CIL's equity could be given to the 400,000-strong workforce of the subsidiaries through the Employees Stock Purchase Scheme. Moreover, CIL also wishes to offer stocks to land losers in areas acquired for mining.
“We will decide on how much (shares) employees and land-losers will be given after the meeting,” Bhattacharyya said, but added that the government in all likelihood would offer 10 per cent to the public.
When asked about the lukewarm response that NTPC's follow-on offer elicited from the bourses and the added pressure it could put on the miner, he indicated that CIL was moving in a calibrated manner. “It is a mandate that has been given to us. It's not a matter of going fast or slow. We are proceeding with it,” he said.
