Coal India Gives Investors Exit Option Due to Prospectus Error

Coal India, the country’s largest coal producing company, which has been in headlines recently over the largest IPO ever to be made available to the public, has been asked by the capital markets regulator SEBI to offer investors an exit option until October 25 after errors were pointed out in its prospectus, the state-run company’s chairman said.

Coal India’s $3.5 billion IPO was more than 15 times oversubscribed following buy recommendations by various leading stock brokers across India. Partha Bhattacharyya said figures were “interchanged” in two places and termed them as “typographical errors”.

Finance Director A.K. Sinha said accretion in stock and other income got interchanged in the company’s standalone financial statement printed in the prospectus and it had no impact on the company’s total income and profit figures.

Asked if the exit option would have any impact on the subscriptions, Bhattacharyya said: “This is a trivial kind of a thing. We wanted to abide by the regulation. “I don’t see any impact.”

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