The government on Tuesday fixed the price band of Coal India Ltd’s (CIL) IPO at Rs 225 to Rs 245 a share — a range that could help the PSU raise over Rs 15,000 crore if next week’s public offer is subscribed fully.
The decision was taken by a ministerial panel headed by Finance Minister Pranab Mukherjee. “Coal India IPO price band has been fixed at Rs 225-Rs 245 a share. We expect to raise over Rs 15,000 crore from the issue,” Coal minister Sriprakash Jaiswal said after a meeting of an Empowered Group of Ministers (EGoM).
The IPO will hit the Indian capital market on October 18. The government is diluting 10 per cent stake in CIL through the public offer.
“There is a 5 per cent discount in the IPO for retail investors and 5 per cent for our employees,” said Jaiswal.
Jaiswal, Home Minister P Chidambaram and plan panel secretary Sudha Pillai are other members of the EGoM.