State-owned Coal India Ltd. is preparing to launch an initial public offering of its unit Mahanadi Coalfields Ltd. as early as this month, according to people familiar with the matter.
The company has begun investor meetings and is looking to kick off the share sale in the second half of November or early December, the people said, asking not to be identified because the information is private. The offering could raise as much as $1 billion and value Mahanadi Coalfields at as much as $10 billion, they said.
Deliberations are ongoing and details including the size, valuation and timing of the offering could still change, the people said.
Representatives for Coal India and Mahanadi Coalfields didn’t respond to requests for comment.
The IPO will consist entirely of shares sold by parent Coal India, with no fresh issuance, according to the draft prospectus filed with the Securities and Exchange Board of India. Coal India, which owns 100% of Mahanadi Coalfields, plans to sell as many as 661.84 million shares, representing a 10% stake, the prospectus shows.