Coal India Ltd. (CIL) is tapping the capital market on October 18 with an initial pubic offer for cash at a price to be determined through the book building process.

The offer comprises a net offer to the public of 56.85 crore equity shares of face value of Rs. 10 each and a reservation of 6.32 lakh equity shares for employees. The issue closes on October 21.

Addressing presspersons here on Monday, N. C. Jha (Director-Technical), said the company expected to mobilise over Rs. 15,000 crore.

He said some of the raw coal produced by CIL was used for the production of beneficiated coal. As of March 31, 2010, CIL operated 17 coal beneficiation facilities with an aggregate designed feedstock capacity of 39.40 million tonnes per annum.

Besides, it intended to develop an additional 20 coal beneficiation facilities with an aggregate additional proposed feedstock capacity of 111.10 million tonnes annually.

Mr. Jha said the company was well positioned to capitalise on the high demand for coal, particularly in the thermal power, iron and steel, cement and other manufacturing and industrial sectors.

As contemplated in the Annual Plan 2011 of the Ministry of Coal (MoC), the company intends to increase its production to 460.50 million tonnes in fiscal 2011 and to 486.50 million tonnes in fiscal 2012.

Coal India would continue to focus on the expansion of its existing mine capacities and the development of new mines.

The company would continue to leverage its strong exploration capabilities and technical expertise related to mining activities to strengthen its reserve base.

Mr. Jha said the company had reported a revenue of Rs.52,592 crore and a profit after taxation of Rs.9,834 crore in the year ended March 31, 2010.

Keywords: Coal IndiaIPO

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