State-owned Coal India will on Monday file the draft prospectus for its initial public offering, which is billed to be India's biggest issue, through which the government expects to raise about Rs 15,000 crore.
"The Coal India board, which met on August 5, has cleared the draft red herring prospectus (DRHP), which will be filed on Monday with market regulator SEBI," a person in-the-know of the development told PTI on Sunday.
Sources said the world's largest coal producer is now compliant with the Securities and Exchange Board of India (SEBI) guidelines, following the appointment of two independent directors on its board, taking the total strength to 14. "The board now has seven official directors and seven independent directors," the official said.
Last month, the Union Cabinet had cleared the proposal to divest 10 per cent of the government's stake in the world's largest coal-miner through an IPO. The Centre holds 100 per cent equity in the company.
Earlier, Coal Minister Sriprakash Jaiswal had said the share sale could be launched in October, terming the month "auspicious", as it coincides with the Durga Puja celebrations.
Coal India Chairman Partha S Bhattacharyya had last month said the IPO is expected to be launched on October 18 and will close on October 21. The government is looking to raise between Rs 12,000 crore and Rs 15,000 crore through the share sale, sources said.
Although CIL's IPO was originally scheduled for August-September, it was delayed due to opposition from trade unions and political parties to the government's proposed 10 per cent stake sale.
Coal India produced 431.5 million tonnes of coal in the last fiscal.
The country's coal output stood at 531.5 million tonnes in 2009-10. The company is one of the cheapest suppliers of the raw material in the world, selling coal at 50 per cent cheaper rates than its global rivals.
Anil Ambani Group firm Reliance Power's IPO in January, 2008, is the biggest IPO in India so far. RPower had raised Rs 11,500 crore through its IPO.
The government aims to raise Rs 40,000 crore through disinvestment of PSUs this fiscal.