CIL board nod for draft prospectus

The draft red herring prospectus (DRHP) of Coal India Ltd. (CIL) has been approved by its board which met here on Thursday.

All the directors of the expanded board of CIL have signed the DHRP which will now be submitted to the Securities and Exchange Board of India (SEBI), a source said.

The DRHP for the proposed initial public offering (IPO) is slated to be filed next week.

Sources said that this was also the first meeting of the expanded CIL board, whose strength has been increased by two, taking the total number of directors to 14.

The board is now compliant with Clause 49 of the listing agreement with seven independent directors on it, including the newly-appointed Sheela Bhide, former chairperson of India Trade Promotion Organisation (ITPO), and Kamal Gupta, a practising chartered accountant.

At the meeting, it was also decided to lower the premium of coal sold through forward e-auction, so as to increase the response level while also bringing it in line with the premium of 66 per cent over the notified price now available for spot e-auction, according to sources.

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