CIL initial public offer likely in September

State-run Coal India Ltd (CIL) is expected to launch its initial public offer (IPO) to divest 10 per cent of its equity in September, minister for coal Sriprakash Jaiswal said today.

Of the 10 per cent equity on offer, one per cent will be reserved for employees of Coal India and its subsidiaries, the minister said.

The IPO issue of around 631.64 million shares is expected to raise over Rs13,000 crore ($2.8 billion).  It would also be the largest stake sale by the government till date.

Addressing a press conference in New Delhi, Jaiswal said the offer price of Coal India shares is yet to be decided. However, he said, small investors and CIL employees would get a five per cent discount.

CIL is likely to file a draft prospectus in the second half of July, reports quoting sources close to the developments said.

The department of disinvestment had, in May, selected six investment banks -Deutsche Bank AG, Morgan Stanley, Citigroup Inc, Enam Securities Pvt Ltd, Bank of America Merrill Lynch and Kotak Mahindra Capital - to co-manage the sale.