Over 3,100 CIL employee IPO applications rejected

Of nearly 25,000 Coal India (CIL) employee applications, over 3,100 have failed to get a pie of the company's Rs 15,200-crore initial share sale offer due to certain anomalies in their applications.

"There were about 3,166 applications for around 7.5 lakh shares in the employee category which have been rejected," a person in the know of the matter told PTI. The development comes just a day before the company's debut on bourses.

According to sources, these applications were rejected on various grounds like multiple forms with common PAN (176 applications), non-eligible employees, applications below discovered price (17), inactive demat account (603) applications with name mismatch, and incomplete PAN.

When contacted, CIL Chairman P S Bhattacharyya told PTI that the company is aware of the development regarding rejection of applications of some of its employees and is gearing up for mitigating action.

"We are aware of the matter. Some mitigating action needs to be taken as well. I have already asked officials to look into the matter and fix responsibility," Bhattacharyya said.

Nearly 25,000 employees, out of its total workforce of 3.98 lakh, applied for shares in the recently-concluded public offer, which was over subscribed 15.28 times and generated bids worth 2.3 lakh crore.

Out of the 63.16 crore shares on offer, 10 per cent of which were reserved for its employees. CIL officials had last week said that only 10 per cent of the reserved shares were bid by employees as the trade unions were protesting the share sale and had advised workers to stay away from the public offer.

After its successful public offer, CIL is schedule to list on bourses tomorrow. Analysts predict a blockbuster debut of the world's largest coal producer.

The Bombay Stock Exchange's Sensex, which is hovering in and around 20,500-mark, has its eyes all set on CIL's listing, which is likely to drive the market to some cheerful note, analysts sais.