Kolkata: Coal India is likely to defer its proposed initial public offering, one of the biggest in Indian capital markets, following the current turmoil in capital markets and continuing resistance from the unions. Sources said that the IPO could be deferred by 30-45 days and will be slotted some time in September. It was supposed to take place in the first week of August. The public sector coal behemoth will offer 63 crore shares to public and its employees which is 10% of the paid-up equity of Rs 6,300 crore with 630 crore shares. When contacted, CIL chairman and MD Partha S Bhattacharyya said the IPO may hit the market in September. “Our preparation is on. We will be ready by August since the market is not doing well now. Besides, there is resistance from the unions as well. So, it could be delayed till September,’’ he added.
According to sources, initially the IPO was slated for the first week of August because according to US regulation, the IPO should come within 134 days of the last result. The company was among the very few PSUs that conducted annual general meeting within 45 days of the fiscal year-end to expedite the IPO. “As per US laws, it should have been by first week of August considering March 31 as year end. But if the IPO is deferred to September, then we will have to incorporate the first quarter results as well. Going by the Sebi rules, the time limit is six months,’’ he added. It may be noted that Coal India had posted a net profit of around Rs 9,600 crore and PBT of over Rs 13,000 crore on turnover of Rs 52,000 crore in 2009-10. All the subsidiaries of CIL had also reported profit in the last fiscal. Incidentally, CIL has already revised wages of its employees and is planning to introduce another revision in 2011. Its CMD, Partha S Bhattacharyya, had earlier said it would start another wage revision exercise of its four-lakh- strong workforce on June 30, 2011, following the expiry of the existing wage revision. CIL will be one of the very few PSUs to introduce two consecutive wage revisions. -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
