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Coal India likely to file final IPO papers on Sep 25

Capital market regulator Securities and Exchange Board of India had on Monday cleared the draft papers of Coal India's initial public offer, paving way for filing red herring prospectus.

twitter-logoPTI | September 21, 2010 | Updated 16:39 IST

State-run Coal India (CIL) is likely to file the red herring prospectus (RHP) for its initial public issue on September 25. The government is expecting to raise about Rs 15,000 crore from the issue.

Capital market regulator Securities and Exchange Board of India (Sebi) had on Monday cleared the draft papers of CIL's initial public offer (IPO), paving way for the government-run coal giant to file RHP, sources close to the developments told PTI.

The regulator has asked the coal major to file the final papers with a few more details.

Sources said the company's board is likely to take up RHP on September 25.

"The meeting was earlier scheduled on September 22, but it will take a few more days to collate data asked for by Sebi," they said.

CIL had filed its draft red herring prospectus on August 9 this year.

The PSU's 4-day public issue is expected to take off on October 18. According to the Draft Red Herring Prospectus filed by the company with Sebi in August, CIL will offer 63.16 crore shares of face value Rs 10, each.

An Empowered Group of Ministers working on the IPO would meet by the end of this month to decide on the anchor investor issue and on October 12 on the price band of the shares being offered, sources said.

The government expects to raise up to Rs 12,000-15,000 crore through the public issue, billed as the country's largest ever. Anil Dhirubhai Ambani Group firm Reliance Power had raised Rs 11,500 crore through its IPO in January 2008 - the biggest in India till date.

The government is diluting its 10 per cent stake in CIL through this issue. At present, it owns a 100 per cent stake in the company.

Citigroup Global Markets India, Deutsche Equities (India) Private, DSP Merrill Lynch, Enam Securities, Kotak Mahindra Capital and Morgan Stanley are the book running lead managers to the issue.

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