Indian government has decided to sell their stakes in major public sector companies like SAIL, Coal India etc through IPO route. Recently government of India has decided to sell its 10% stake in Coal India. It is most likely to generate some rupees fifteen thousand crore. On Monday in parliament, Indian ruling party has announced their decision to disinvest their stake in Coal India Ltd (CIL). The sale of stake will be done by book building process. In Book building process, the investors are given a specific range of price for bidding. Earlier Indian government has issued IPO of NMDC & NTPC but it did not attract a lot of investors. It is expected that CIL IPO will be a hit. On August 5th draft regulatory papers will be filed by CIL to SEBI. The IPO is scheduled in 18th to 21st of October’2010.
SAIL will be another 100% government holding company whose stake will be sold in this fiscal year of 2010-11. Government of India has decided to raise funds by Disinvestment of their stake to meet the requirements of infrastructure development in India. It is a much welcomed step of Indian government. As on today the biggest IPO was Reliance Power by Anil Ambani, which raised an approx capital of Rs 11500 crore. CIL IPO is most likely to cross that figure of Reliance Power and become the biggest IPO ever.
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