RoC approves CIL IPO prospectus
In the last of a series of regulatory approvals, state-owned Coal India (CIL) today got the clearance from the Registrar of Companies (RoC) for its IPO next month, which could generate up to Rs 16,000 crore.
"RoC have given their certificate to CIL for the IPO. The copy of the certificate has also been submitted to (market regulator) Sebi," a person in the know of the development told PTI.
CIL filed the Red Herring Prospectus (RHP) for the issue with Sebi last evening after incorporating 78 changes suggested by the regulator.
The RoC clearance has paved the way for the four-day initial public offering (IPO), billed as the country's largest issue ever. The government is selling 10 per cent stake in CIL through the issue, which would start on October 18.
At present, the government owns a 100 per cent stake in the company.
Meanwhile, the government would take a decision on the price band for the IPO on October 12 as an Empowered Group of Ministers (EGoM) Meeting is scheduled on the day.
Sources said the upper price band for Coal India's IPO could be around Rs 260 per share, a range which could help it raise over Rs 16,000 crore if the public offer is fully subscribed .
The company will offer 631,636,440 shares with a face value of Rs 10 each, as per the papers.
Citigroup Global Markets India, Deutsche Equities (India), DSP Merrill Lynch, Enam Securities, Kotak Mahindra Capital and Morgan Stanley are the book-running lead managers for the IPO.
The biggest IPO till date is that of Anil Dhirubhai Ambani Group company Reliance Power which in January, 2008, raised Rs 11,500 crore.