The price band for the eagerly awaited initial public offer (IPO) of India's largest coal producing company, Coal India (CIL) has been fixed at Rs 225-245 a share & will open for subscription on October 18 and will close on October 21, 2010.
The company is offering 63.16 crore equity shares through the issue of which employees and retail investors will get 5% discount to the issue price.
The government expects to raise over Rs 15,000 Cr through the IPO, which will be largest ever amount raised by an Indian company via offering. The company will not receive any proceeds from the offer and all proceeds will go to the selling shareholder (GoI), whose stake will be 89.99% post the issue.
As per draft prospectus, CIL is the largest coal producing company in the world based on raw coal production of 431.26 million tons in fiscal 2010. It is also the largest coal reserve holder in the world based on reserve base as of April 1, 2010. (Source: CRISIL Research)
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