Tuesday, October 19, 2010

Coal India Limited IPO opens

by punem sexsena
:Mumbai. Coal India Limited`s Rs15,000 crore initial public offering (IPO) has opened today for the public subscription. The country`s largest IPO was expected to generate heavy investor demand.

After about two hours, the offering had attracted more than 0 million in orders, or 0.13 times the shares on offer, with most bids at the top of a 225 to 245 rupees per share price range, according to stock exchange data.

Large IPOs in India typically see the heaviest subscription towards the close of the offering. Coal India`s IPO for institutional investors will close on Wednesday and for retail investors it closes on Thursday.

"We will find a surge in applications tomorrow onwards from institutions and high net worth investors," said Arun Kejriwal, director at Mumbai-based research firm KRIS, who expects the offer to be more than 10 times covered.

The government is selling 631.6 million shares, or a 10 per cent stake, in the world`s largest coal miner, part of India`s broader effort to divest stakes in roughly 60 companies in the next few years.

If priced at the top of its IPO range, Coal India would have a market value of billion, ranking it seventh among listed Indian companies. It would surpass Reliance Power`s billion listing in 2008 as India`s largest new issue.
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