Thaindian News

Kolkata, Oct 18 (IANS) Coal India Limited (CIL) sees the reserved employees quota of one percent of the total initial public offering (IPO) of 10 percent that opened Monday would remain mostly unsubscribed.

“Employees’ responses have been influenced by the attitude of the trade unions. The trade unions have been dithering. This is a level with which we are not very happy because in this kind of a process the participation of employees is highly desirable,” Partha S. Bhattacharyya, chairman and managing director, told at a press meet here.

There are five recognised trade unions in the company- Indian National Trade Union Congress, Centre of Indian Trade Unions, All India Trade Union Congress, Bhartiya Mazdoor Sangh and Hind Mazdoor Sangh.

“Certainly it (subscription) will fall short. It was calculated 50 percent of the employee will subscribe to 50 percent of the amount,” he said.

Bhattacharyya said initially the trade unions opposed disinvestments but after confirmation from the finance ministry four trade unions gave the nod.

“Now suddenly again started talking about strikes,” he said.

He said the company had to list itself in the bourses after it got Navaratna status to hold on to that status. “It is with that perspective we have planned the IPO.”

Bhattacharyya also said the employees of all the subsidiaries can also subscribe to the IPO. “Around 400,000 employees of both CIL and its subsidiaries are entitled to subscribe it,” he said.

He said at present Bhartiya Mazdoor Sangh and Hind Mazdoor Sangh are creating problems, which is leading to under subscription of the employees’ quota.

The unsubscribed shares of the quota would be distributed among the retail, high networth individuals and qualified institutional buyers.

The price band of the CIL IPO is fixed between Rs.225 and Rs.245 per share. The offer will close Oct 21.