What happened
South Eastern Coalfields has engaged a slate of banks to pursue a potential Mumbai listing that could raise up to $800 million, said people who requested anonymity due to the private nature of the talks. Representatives for Coal India, South Eastern Coalfields and the banks did not immediately comment.
Deal specifics
The company selected ICICI Securities Ltd., SBI Capital Markets Ltd., Motilal Oswal Investment Advisors Pvt. and IDBI Capital Markets & Securities Ltd. as advisers on the transaction. The plan is to submit an initial draft offer document around December, the people said. They also cautioned that discussions are still in progress, so the final size and timing could shift. The offering is slated to include a sale of shares by parent Coal India.
How this fits with Coal India's listings
Coal India has been moving more of its units toward the market. Earlier this month, Mahanadi Coalfields Ltd. filed its draft prospectus with India's market regulator. In that deal, Coal India plans to offer up to 661.8 million shares, according to the filing. If it proceeds, a South Eastern Coalfields IPO would add to a broader wave of Indian equity issuance as companies seek funding from the country's growing base of local investors.
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What this means for your portfolio
South Eastern Coalfields is one of Coal India's biggest subsidiaries, operating 60 mines in central India - 35 located in Chhattisgarh and 25 in Madhya Pradesh. If this listing goes ahead, it would land in a market already busy with new deals, giving investors more homegrown options to research and compare.
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