Coal India IPO: Review Analysis & Details

Another IPO is set to hit the primary stock markets pretty soon. The IPO belongs to Coal India Limited Company, which is a thermal power generation company promoted by the government of India and it has now come out with the Initial Public Offering or IPO.
In this article, we will look at the Review, Analysis and Details of the Coal India IPO and try to do the Review and analysis of Coal India IPO.

Coal India IPO: Review Analysis & Details

Some basic details first about the Coal India IPO, which are available as of now:

- The size of Coal India IPO is expected to be between Rs 140,000 crore and Rs 153,000 crore.

- This is the first IPO in India which has received 5 out of 5 ratings from all three rating agencies - CARE, ICRA and other

- This is the first IPO in India which will have the listed company direct entry into Nifty 50 and Sensex 30 indices

- This is the first IPO for which there will be a direct entry into the derivatives (futures & options) segment

What is the issue size of the Coal India IPO?
Around between Rs 140,000 crore and Rs 153,000 crore is the size of the IPO. In USD it will be around $32-34 billion

What is the price band of Coal India IPO?
The price band details are precisely not available at the moment - However, it is known that the recommended price band for Coal India IPO is Rs. 220 to Rs. 240 per share. Final price to be decided through 100% book building process.

How many shares will be sold in the Coal India IPO?
The total no. of shares to be sold through this IPO is 632 million shares.

What is the trading symbol & exchange for the Coal India IPO
No info about that

What are the IPO dates for Coal India IPO
The IPO for Coal India will open on dates 18 October and will close on 21 October 2010.

Any ratings given to Coal India IPO?
No information about that.

What are the analysts recommendations for Coal India IPO?
Coal India is owned by the government of India which is planning to raise around 15,000 Crore Rs. through this IPO of Coal India. It has 63 billion tonnes of coal which makes Coal India the world’s largest reserves of coal.
After Reliance Power IPO, this IPO is expected to be the largest.
The power needs for the country are increasing day by day. Hence Power companies are expected to benefit. Infrastructure developments are on the rise with a stable government at the center. However, one needs to look at the valuations of the company and how well it is placed with regard to the competitors. Being a government controlled Navratna company, this is found to be having strong fundamentals.
The government is also expected to offer the shares of coal india limited at 5% discount to retail investors, hence they will benefit.
Majority of the market experts and analysts say that this IPO should be subscribed to, and it is even being cited that due to this IPO there might be a fall in the market. The reason is that this is much awaited IPO and investors will take out money by selling their existing shares in the market to apply for this IPO. Hence this IPO should be definitely subscribed to.
However, one must not go only with the recommendations. Remember Reliance Power IPO and what happened to it on the day of listing? (See Reliance Power IPO: What went wrong?. Market experts are pretty hopeful about this IPO and the returns - See news: Expect 30% Returns on listing Day: Market Experts. Investors should take their own call on this IPO as per their own risk appetite