Coal India today said it will move the market regulator Sebi by June 15 to file the draft papers for its proposed IPO in which the government plans to sell 11 per cent stake and raise an estimated Rs 10,000 crore.
The government at present holds 100 per cent equity in the coal major. Out of the proposed 11 per cent stake sale, about 10 per cent of the government equity would be channelised towards the IPO while the rest would be given to the employees of CIL and its subsidiaries.
"CIL will file draft red herring prospectus (DRHP) with the Sebi by June 15 subject to approval by the government. The disinvestment should happen by end July or August," CIL chairman Partha S Bhattacharyya told reporters here.
The government plans to raise about Rs 10,000 crore through the CIL IPO, sources said.
Disinvestment in the Navratna company is part of the UPA government's plans to raise up to Rs 40,000 crore in the next fiscal from selling stakes in PSUs. Earlier this month, taking forward the proposed divestment plan Sebi had allowed the coal major to offer shares to its 4 lakh employees, including that of its seven subsidiaries.
On Coal India's overseas plans, Bhattacharyya said it is examining five investment proposals worth $1 billion from two companies to buy stakes in overseas assets.
He said the PSU is carrying out due diligence on five proposals from two companies including the US' biggest coal company Peabody Energy Corp to jointly buy stake in global ventures. "The total investment proposals from these companies is about $1 billion," Bhattacharyya said adding, the company is examining the proposals.
The PSU had floated global bids in July last year inviting players to parter with it for joint ventures in coal mining abroad, including that in the US, Australia, Indonesia and South Africa. It had received about 17 proposals from companies, including from Peabody.
The CIL chairman last month had said the PSU may invest about $2 billion over the next four years to buy stakes in overseas assets. It had acquired two blocks last year in Mozambique with estimated reserves of 1 billion tonne.
The state-owned coal giant accounts for about 75 per cent of the country's dry fuel production. It had set coal production target of 435 million tonne for this ongoing fiscal, an increase of 7.5 per cent over the previous year.
CIL had earmarked a capital expenditure plan of Rs 3,200 crore to meet its increased production target.