Coal India IPO News : Coal India IPO Share Price reached 13.9 billion rupee in the first hour of bids at the upper end as Coal India Ltd., the world’s biggest producer of the fuel, received 13.9 billion rupees ($314 million) of bids at the upper end of the price range in the first hour of the nation’s biggest initial share sale. Coal India Ltd’s initial public offer (IPO) to set indian bourses today on October 18, 2010. As the one of the biggest IPO, the company has aimed to raise Rs 15, 000 crore from the market. The Coal India Ltd (CIL IPO) per share price is in the range of Rs 225-245.
Market experts believe that one should subscribe to the coal India IPO because the issue price is attractive and company will post 15-18 percent growth. They believe that the fair price of CIL’s per share would be at Rs 265-315. experts said that today’s downfall was expected because the liquidity flow is towards CIL IPO. Coal India IPO will close on October 21.
For qualified institutional buyers, which include FIIs, insurance firms and mutual funds, the IPO will close on October 20. Post listing, the market capitalisation of the company would be a staggering Rs. 1,54,750 crore
($34.70 billion) with 90 per cent shareholding with the government and 10 per cent with the public.
Coal India has the largest coal reserve and is also the biggest owner and producer in the world. It has access to 64.3 billion tonnes of coal reserves which accounts for 6 per cent share of the global proven reserves. The company is one of the lowest cost producers globally ($12/tonne) and sells coal at a big discount. On the flip side, the quality of coal in India is not the best. The IPO has garnered a bullish endorsement from most of the market experts who believe it would be the star attraction of this week for all, including retail investors.
“This week the main attraction for retail investors would be the primary market with the mega IPO of Coal India slated to open on Monday,” Delhi-based SMC Global Securities Research head of retail Saurabh Jain said.
