The Rs12,000-crore initial public offer (IPO) of Coal India Ltd (CIL) is likely to hit the market in October, rather than in September as earlier planned.

The sale of 10 per cent government equity, which was earlier delayed by political and trade union opposition to the move, is now being delayed due to the `inauspious' time in September, sources said.

The dark fortnight preceding Navratri - a period between the later part of September and the first week of October - is known as Pitr-Paksha, or Mahalay Paksha. This fortnight is a time for performing rites to deceased ancestors to keep their souls gratified for years and is considered inauspious by investors, mainly in Gujarat and Maharashtra.

Also, October-end is a better option considering that with Diwali bonuses and festivities lighting up moods, investment decisions are taken around this time.

The department of disinvestment is now reported to have finalised the issue date after the programme got its final nod from finance minister Pranab Mukherjee and coal minister Sriprakash Jaiswal.

Coal India is now expected to file the draft red herring prospectus of the IPO by the first week of August.

The IPO schedule got its final approval last evening at a meeting between finance minister Pranab Mukherjee and coal minister Sriprakash Jaiswal.

Additional secretary (coal) Alok Perti, divestment department secretary Sumit Bose and Coal India chairman P S Bhattacharyya also attended the meeting.

The government is selling 10 per cent of its 100 per cent stake in the coal major. The union cabinet has already approved the divestment plan and CIL had earlier proposed to issue over 630 million shares in the IPO.

Coal India, the largest coal firm in the world, produced 431.5 million tonnes of the country's total coal output of 531.5 million tonnes in 2009-10. CIL is also the country's largest corporate employer.