Coal India looks to Diwali to fire up its Rs12,000-crore IPO plan

The Rs12,000-crore initial public offer (IPO) of Coal India Ltd (CIL) is likely to hit the market in October, rather than in September as earlier planned.

The sale of 10 per cent government equity, which was earlier delayed by political and trade union opposition to the move, is now being delayed due to the `inauspious' time in September, sources said.

The dark fortnight preceding Navratri - a period between the later part of September and the first week of October - is known as Pitr-Paksha, or Mahalay Paksha. This fortnight is a time for performing rites to deceased ancestors to keep their souls gratified for years and is considered inauspious by investors, mainly in Gujarat and Maharashtra.

Also, October-end is a better option considering that with Diwali bonuses and festivities lighting up moods, investment decisions are taken around this time.

The department of disinvestment is now reported to have finalised the issue date after the programme got its final nod from finance minister Pranab Mukherjee and coal minister Sriprakash Jaiswal.

Coal India is now expected to file the draft red herring prospectus of the IPO by the first week of August.