The Initial Public Offering (IPO) of Coal India Limited (CIL), the country's largest public issue, has evoked a rather lacklustre response from the employees of Mahanadi Coalfields Limited (MCL), a subsidiary of CIL.
“Less than ten per cent of MCL's employees have subscribed to the IPO, much to the disappointment of CIL. Only 1970 employees of MCL went for the IPO as against the total employee strength of 21300 of the company”, said a source familiar with the development.
An employee can subscribe a maximum of up to 400 shares at a price of Rs 98000.
“Lack of publicity by company and misinformation by some trade unions has dissuaded many aspiring employees to purchase the shares. Even a trade union resorted to strike on that day opposing the disinvestment. Had the issue been publicized or employees were appraised properly, more employees could have turned up at par with other coal subsidiaries”, the source added.
Besides, many employees also could not open demat accounts rendering them not eligible to apply for IPO.
