The road might be difficult to walk amidst threats from the company workers going on a strike.
CIL is likely to commence its investor road shows from Tuesday 22 October, 2013 ahead of its proposed follow-on public offering (FPO). Government will raise around INR 90 billion by selling additional 5% of CIL’s stake in the current market price.
The road shows will begin in US and UK, headed by the Chairman of CIL along with other top managerial officers. In the first phase, the officials are scheduled to meet investors in New York, Chicago, San Francisco and London. The second phase will commence from Singapore and Hong Kong after the Q2 FY13 results are announced by CIL. India will be touched in the last phase of road shows by the company. CIL Chairman S Narsing Rao said that he would meet the investors to gather undertakings for USD 1.6 billion share sale. Mr Rao would also meet the brokerage firms such as Jefferies LLC and Edelweiss Financial Services.
The workers have threatened to go on a strike in December against the Government’s move of divesting the company’s stakes. The strike was earlier scheduled for three days starting from 23 September then, it was postponed to 17 December, 2013.
Government, with an ownership of 90% stake in the company had earlier planned to sell off 10% stake to calm down the employee union. However, now the proposal is to divest 5% of the company’s stake through offer for sale (OFS) route.
The road shows of CIL are basically aimed to ring in foreign investments in the country. This is a non-deal road show for telling the investors about CIL and kind of reserves it has.