Coal India public offer opens
Coal India Limited (CIL), a state-owned coal company headquartered in Kolkata, entered the Capital Market on Monday with a Public Offer of 631,636,440 Equity Shares of Rs 10 each through and offer for sale by thePresident of India acting through the Ministry of Coal, Govt. of India at a Price Band ranging between Rs 225 and Rs 245 per Equity Share.
This was announced by the Board of Directors of Coal India Ltd., at a press conference here on Monday.
The Offer which opens for subscription on October 18, 2010 will close on October 20, 2010 for Qualified Institutional Buyers (QIBs) and on October 21, 2010 for Retail and Non-Institutional Bidders (including eligible employees bidding under the Employee Reservation Portion) respectively.
The Offer comprises a Net Offer to Public of 568,472,796 Equity Shares while 63,163,644 Equity Shares will be reserved for Subscription by Eligible Employees.
The Offer shall constitute 10% of the post offer paid up equity share capital of the CIL and the Net Offer shall constitute 9% of the post offer paid up equity share capital of the company. The minimum bid lot has been fixed at 25 Equity Shares.
The Selling Shareholder, in consultation with the Book Running Lead Manager has fixed the Price Band between Rs 225 and Rs 245 per Equity Share for the IPO.
A discount of 5% to the Offer Price determined pursuant to the completion of the book building process shall be offered to Retail Individual Bidders and eligible employees (?Retail and Employee Discount?). The excess amount paid at the time of bidding shall be refunded to the retail individual bidders and eligible employees.
The Offer has been assigned a 5/5 grading by ICRA, CRISIL and CARE indicating that the fundamentals of the Offer are strong relating to other listed equity shares in India.
At least 50% of the Net Offer shall be allotted proportionately to QIBs. The Selling Shareholder and Coal India, in consultation with the BRLMs might allocate upto 30% of the QIB portion to Anchor Investors of which 1/3rd will be available for allocation to domestic Mutual Funds only.
In case of under subscription or non-allocation to Anchor Investor Portion, the balance Equity Shares shall be added to remaining QIB portion.
Moreover, not less than 15% of the Net Offer shall be offered to Non-Institutional Bidders on a proportionate basis while not less than 35% of the Net Offer shall be available proportionately to Retail Individual Bidders.
A Bidder can participate in this Offer through ASPA process by providing details of the respective bank accounts where the corresponding Bid Amounts will be blocked by SCSBs.
The Offer is proposed to be listed on the NSE and the BSE respectively. BSE is the Designated Stock Exchange for the Offer.
The BRLMs to the Offer are Citigroup Global Markets India Pvt. Ltd., Deutsche Equities (India) Pvt. Ltd., DSP Merrill Lynch Ltd., ENAM Securities Pvt. Ltd., Kotak Mahindra Capital Company Ltd., and Morgan Stanley India Co. Pvt. Ltd.
