Coal India will soon start the groundwork for its initial public offer.

The coveted navratna status, which the PSU got last week, makes it mandatory for Coal India to get listed within three years.

“We’ll try to come out with our initial public offer well before the stipulated three years,” said Partha S. Bhattacharyya, chairman of Coal India.

The company may dilute five per cent of its equity to start with, sources said.

Discussions will soon begin with the government and other agencies. Coal India needs the money to turn around its ailing subsidiaries — Eastern Coalfields Ltd and Bharat Coking Coal Ltd — and acquire equity stakes in overseas mines.

The PSU wants the government to set up a panel of secretaries to clear projects of an investment size of more than Rs 1,000 crore.