The government today said it has invited applications for appointment of lead managers to advise it on the timing and other aspects of the proposed initial public offer of Coal India Ltd (CIL).
    
"The government will select and appoint up to six merchant bankers with requisite experience in public offerings, who together will form a team and be called book running lead managers," the Disinvestment Department of the Finance Ministry said while inviting proposals.
    
Interested parties can submit their proposals to the department by May 3, 2010.
    
The government proposes to offload 10 per cent equity in the coal monolith in July-August, which could fetch the exchequer about Rs 10,000-12,000 crore, depending upon the issue price.
    
The bidders interested in advising the government on CIL's initial public offer should have handled domestic equity issues to the tune of Rs 500 crore or more during the past three years, the department said.
    
The Cabinet, however, is yet to give the final nod for 10 per cent disinvestment in Coal India. The proposal, according to sources, is likely to be taken up by the Cabinet in the coming weeks.
    
"The appointment of the BRLMs would be subject to and after the decision of the government on the proposal for listing of CIL," the Disinvestment Department said.
    
The lead managers would also advise the department on the regulatory norms and assist in securing approval and exemptions, wherever necessary, from various regulatory agencies such as SEBI, the stock exchanges and RBI.
    
They would also have to ensure best returns to the government.
    
While conferring Navratna status to CIL in October, 2008, the government had asked the coal firm to get listed within three years, which required disinvestment of at least 10 per cent of the government's holding.
    
The government now plans to disinvest a 10 per cent stake in CIL through an IPO, out of which 9 per cent of the shares would be channelised through the IPO and the rest would be sold to employees.
    
The Centre holds 100 per cent equity in CIL. The share sale is likely to happen through the book building route.

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