The world’s largest coal producer Coal India Ltd’s initial public offering, which will see the government offloading 10 per cent stake in CIL, will hit the market by the end of July and close on August 12. The government hopes to mop up Rs 12,000 crore through the sale.
The cash-rich public sector unit registered a 6.8 per cent increase in coal production during 2009-10 at 431 mt (million tonnes) and has set a target of 462 mt for 2010-11, a growth of 7 per cent. The company has also built a war chest of Rs 6,000 crore for foreign acquisitions this fiscal year and is currently evaluating five mining assets in countries such as the US, Australia and Indonesia.
“In addition to our capital expenditure plan of Rs 3,800 crore for 2010-11, we have earmarked Rs 6,000 crore for foreign acquisitions this fiscal year, said Partha Bhattacharya, Chairman, CIL.