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| CIL IPO likely to hit capital market in six months |
| Press Trust of India / New Delhi Feb 02, 2010, 16:26 IST |
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The government today said it will divest up to 15 per cent stake in state-run Coal India (CIL) in next six months.
"The process is on to divest up to 15 per cent stake in Coal India. We are expecting the initial public offer (IPO) to hit the market in next six months," Coal Minister Sriprakash Jaiswal told reporters here today.
The government, at present, holds 100 per cent stake in the country's largest coal producer.
"Out of this 15 per cent five per cent would be offered to CIL employees and remaining would be made available for the general public," he said.
Employees of CIL will include employees of all its seven subsidiaries. "Otherwise there is no point offering equity to about 400-500 employees of CIL alone who sit in Kolkata," he said.
However, CIL Chairman Partha S Bhattacharyya had said last week that the government may divest only 10 per cent stake in the PSU in the next fiscal, against the desired 15 per cent, as regulatory provisions barred it from reserving some shares for employees.
"We may only divest 10 per cent stake. The existing Securities and Exchange Board of India (Sebi) guidelines say you can't give shares to subsidiaries. If you can't give it to them. There is no point," Bhattacharyya had said.
A delegation comprising officials from CIL, Coal Ministry and Department of Disinvestment are expected to meet Sebi this month to take forward disinvestment in the firm.
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