South Eastern Coalfields Ltd (SECL), a subsidiary of state-owned Coal India Ltd, has filed preliminary papers with the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO), marking another step in the government's efforts to list coal sector subsidiaries.
The proposed public issue will comprise an offer for sale (OFS) of up to 66.81 crore equity shares by promoter Coal India, with no fresh issue component, according to the Draft Red Herring Prospectus (DRHP) dated November 1.
The IPO could raise as much as $800 million, Bloomberg reported, citing people familiar with the matter.
Since the issue is entirely an OFS, SECL will not receive any proceeds from the public offering. The entire amount raised through the share sale will go to Coal India, which will dilute its stake in the subsidiary.
SBI Capital Markets, ICICI Securities appointed lead managers