The Department of Investment and Public Asset Management (DIPAM) and Ministry of Coal have processed a proposal seeking approval of the alternative mechanism for the listing of MCL based on the nod given by boards of Coal India and MCL, as per a stock exchange filing by Coal India.
CIL may disinvest its stake in MCL through Offer for Sale (OFS) of existing shares as part of the IPO of MCL and subsequently in one or more tranches.
MCL may raise capital through fresh issue of equity shares as part of the IPO and/or through subsequent follow-on public offers, qualified institutional placements or other approved mechanisms.
The disinvestment and capital raising may be undertaken simultaneously or separately, in one or more tranches.
The overall extent of disinvestment/capital raising under the above mechanisms shall be limited to reducing CIL’s shareholding in MCL by up to 25 per cent. The proposed listing of MCL shall remain subject to prevailing market conditions and completion of all necessary statutory and regulatory formalities.
