Thursday, November 4, 2010

Coal India IPO investors richer by 36%

Coal India (CIL) - India's largest coal producing company has seen overwhelming response from investors to its debut on the stock exchanges. The stock shot up to a high of Rs 324.95 in early trade. It was a complete Diwali gift for retail investors, which have received allotment at Rs 232.75 a share, a discount of 5% to final issue price of Rs 245.
Retail investors received Rs 199 shares in allotment, which gave returns of Rs 92 per share upon listing, taking total profit to Rs 18,308 (at Rs 324.95 a share). Even it is very good for other investors like high networth and qualified institutional investors; for whom profit came in at Rs 79.95 a share.
Diwali Bonanza: Coal India lists at Rs 291/share

At 9:42 hours IST, a share was trading at 324.60, up 32.49%, with volume of 15.80 crore equity shares on the National stock exchange. It gives the market capitalisation to the stock at more than Rs 2 lakh crore.
Commenting on the stellar performance of the stock Uday Kotak VC & MD, Kotak Mahindra Bank said the listing was way above expectation as he had only anticipated listing gains of around 20%. The Coal India listing was a tipping point for retail investors as it would help get retail interest back into markets. “Coal India will be seen as 1 of the finest resource companies globally,” he said.
The company has raised more than Rs 15,000 crore through IPO, with the issue price fixed at Rs 245 a share, at higher end of price band of Rs 225-245. All issue proceeds received by the selling shareholder (government of India). The government’s stake reduced to 89.99% post the issue.
Coal India has earmarked Rs 46 billion (USD 1 billion) as capital expenditure for the next fiscal year beginning in April 2011, its chairman said on Thursday. The company will use its cash reserves for overseas acquisitions, Partha Bhattacharyya told reporters. (Courtesy: Reuters)
CIL has let the coal production slip in October by around 8.1% or 3.19 million tonnes (mt) to 36.01 mt from the targeted 39.20 mt. However, this is 1.6 mt better than last year's October figure. (Courtesy: The Hindu Business Line)
According to the CIL Chairman, Partha S Bhattacharyya, the production during the period between April 1 and October 31 of the current fiscal was also short of target – 221.68 mt against 243.15 mt – but marginally up from last year's actual production of 218.94 mt.


No comments:

Related Posts Plugin for WordPress, Blogger...