* To file prospectus by Monday or Tuesday next week-sources
* Offer to hit market around Oct 15
* Offer may be largest ever by an Indian firm
(Adds details, updates size milestone)
By Prashant Mehra and Pratish Narayanan
MUMBAI, Aug 6 State-run Coal India, the world's
largest coal miner, will file a draft prospectus for an initial
public offering to raise as much as $3 billion early next week,
three sources with direct knowledge of the matter told Reuters
The company's public offer of about 630 million shares, or
a 10 percent stake, is expected to hit the market around
October 15, two of the sources said.
The Indian government, bolstered by its success in share
sales in two state-run firms this fiscal year, plans to raise
up to 140 billion rupees ($3 billion). If successful, that
would be the biggest share sale ever by an Indian firm,
surpassing utility Reliance Power's (RPOL.BO) $2.9 billion IPO
Morgan Stanley (MS.N), Citigroup (C.N), Kotak Mahindra
Capital (KTKM.BO), Enam Securities, Deutsche Bank (DBKGn.DE),
and Bank of America-Merrill Lynch (BAC.N) are the managers on
The sale is part of a government plan to sell stakes in
about 60 state-run firms over the next few years, as it moves
to cut a stubbornly high fiscal deficit and garner funds to
spend on schemes for the poor. [ID:nSGE64R0BK]
The Indian government plans to raise $8.6 billion through
stake sales in fiscal 2011.
Since April, India has raised $260 million by selling
shares in state-run utility SJVN's (SJVN.BO) IPO, and another
$211 million through a share sale in Engineers India (ENGI.BO).
Both offers saw strong response from investors.
Other government share sales in the pipeline this fiscal
year include public offerings in Steel Authority of India Ltd
(SAIL.BO), Hindustan Copper (HCPR.BO) and Power Grid (PGRD.BO).
Coal India, based in the eastern city of Kolkata, produced
431 million tonnes in 2009/10 and accounts for nearly 80
percent of coal output in Asia's third-largest economy. It
posted net profit of 83.12 billion rupees ($1.8 billion) in
2009/10, quadrupling from the previous year on the back of
(Editing by Surojit Gupta and Jui Chakravorty)