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MUMBAI: The government has appointed Adfactors PR as its communications consultant for Coal India‘s Rs 12,000 crore Initial Public Offer (IPO), which is expected to hit the market in October.
Adfactors, a leading communications firm, beat industry peers like Concept, Pressman Advertising, Sobhagya Advertising, Raka Advertising, Hanmer Advertising and Dentsumarcon to bag the prestigious job.
"Adfactors has been selected to handle advertisements and PR activities of the Coal India IPO," a senior Finance Ministry official said.
In Kolkata, Coal Minister Sriprakash Jaiswal said the CIL IPO was expected in October. Earlier, the world‘s largest coal producer had indicated that it plans to launch the issue in August-September.
The Department of Disinvestment had invited PR companies to handle external communications in the run up to the IPO and over half a dozen companies were called for presentation on Monday, June 28, 2010.
Earlier, the government had appointed six merchant bankers -- Citigroup, Deutsche Bank, Morgan Stanley, Enam, Kotak Mahindra and DSP Merrill Lynch -- for managing the IPO.
The Cabinet had approved the divestment of 10 per cent of the government‘s holding in CIL through a public offer. The Centre holds 100 per cent equity in the company.
Jaiswal had earlier said the government would raise Rs 10,000-12,000 crore from the stake sale.
The government aims to raise Rs 40,000 crore through disinvestment this fiscal. So far, divestment in Satluj Jal Vidyut Nigam has fetched the exchequer over Rs 1,000 crore.
The government is likely to sell its stake in 10 PSUs, including MMTC, SAIL and Hindustan Copper, this fiscal.
During the last fiscal, it had raised Rs 25,000 crore through stake sales in Oil India, NMDC, REC and NTPC.
