Business Daily from THE HINDU group of publications
Saturday, Jul 07, 2007
ePaper
Business Daily from THE HINDU group of publications Saturday, Jul 07, 2007 ePaper |
|
|
|
|
|
|
|
Corporate
-
Outlook Markets - IPOs
Our Bureau New Delhi, July 6 Coal India Ltd (CIL), which was expected to hit the market with its initial public offer soon, would now wait till it is granted the Navaratna status by the Department of Public Enterprises (DPE). The formal request for this from the Coal Ministry is currently under consideration of the DPE, officials said. Entering the market with the Navaratna status would not only help the Government realise better price for CIL shares but would also empower the company with much greater operational flexibility such as the power to approve projects up to Rs 2,000 crore on its own, sources said. Eleventh Plan
The Navaratna status may also lead to modifications to the company’s earlier plan in which it targeted to raise anywhere between Rs 4,000 and Rs 4,500 crore from the market. CIL currently has an equity base of Rs 6,316 crore, which is entirely held by the Central Government. Though the company has reasonable amount of internal reserves, it needs to raise funds to meet the Eleventh Plan target set by the Government. The incremental target (difference in output between the last year of Tenth Plan and the last year of Eleventh Plan) for the Eleventh Plan has been set at around 160 million tonnes (mt) as against 80 mt for the Tenth Plan. In the last year of the Ninth Plan CIL produced 279.65 mt of coal which went up to 360.94 mt in the last year of the Tenth Plan. The target for the last year of the Eleventh Plan period stands at 520.50 mt marking an increase of around 160 mt.
More Stories on : Outlook | IPOs | Coal
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2007, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|