Coal India IPO : Price Band fixed

by khalid on 12/10/2010 · 26 comments

A ministerial panel, headed by Finance Minister Pranab Mukherjee, has fixed the price band of Coal India IPO at Rs 225 to Rs 245 a share. The world’s largest coal miner Coal India Limited will bring its IPO to the primary market from 18th Oct 2010. The IPO range fixed by the government could help it to raise around Rs 15000 crore. The government is diluting 10 per cent stake in Coal India Limited (CIL) through the public offer. At present, the government owns a 100 per cent stake in the company. The biggest IPO in India till date is that of Anil Ambani Group company Reliance Power. In January 2008, it raised Rs 11,500 crore.

The company is a Navratna company of Indian Government. The company is entering into primary market with an Initial Public Offer (IPO) of 631,636,440 Equity Shares of Rs. 10 each. The IPO is opening on 18th Oct 2010 and the shares will be available for subscription up to 21st Oct 2010. The premium of the issue will be decided through a 100% Book Building Process. There is a 5 per cent discount in the IPO for retail investors and 5 per cent for employees.

The objects of the IPO are to carry out the divestment of 631,636,440 Equity Shares by the Selling Shareholder and to achieve the benefits of lisitng the Equity Shares on the Stock Exchanges.

The equity shares offered through the IPO are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Issue Detail:-
Issue Open : 18th Oct 2010 – 21st Oct 2010
Issue Type : 100% Book Built Issue IPO
Issue Size : 631,636,440 Equity Shares of Rs 10 each
Issue Size : Rs. 15000 Crores
Face Value : Rs 10 Per Equity Share
Issue Price : Rs. 225 – Rs. 245 Per Equity Share
Market Lot : 25 Shares
Minimum Order Quantity : 25 Shares
Listing At : BSE, NSE

Book running lead managers to the issue are Citigroup Global Markets India Private Limited, Deutsche Equities India Private Limited, DSP Merrill Lynch Limited, Enam Securities Private Limited, Kotak Mahindra Capital Company Limited and Morgan Stanley India Company Pvt Ltd.

Registrar of the Issue : Link Intime India Private Ltd, Mumbai.

Related Posts Plugin for WordPress, Blogger...

Leave a Comment

{ 25 comments… read them below or add one }

M.L.BATRA October 13, 2010

what is the lot size

Reply

khalid October 13, 2010

Hi Batra

Lot size of Coal India IPO would be made public atleast 2 working days prior to Issue Opening Date and it will be updated here accordingly.

Thanks for your visit.

Reply

M.L.BATRA October 13, 2010

ninimum shares kitne laga sakte haim

Reply

khalid October 13, 2010

Hi Batra

Aap kitne minimum share laga sakte ho, yeh information 16th Octoner tak pata lagne ki sambhavna hai. Pata lagte hi yahan BelltheBull mein publish kar diya jayga.

So please visit again for updation, thanks.

Reply

Jayesh Thakkar October 13, 2010

No minimum and maximum order quantity for retail investor available. Please tell us.

Jayesh Thakkar

Reply

khalid October 13, 2010

Hi Jayesh

Minimum and maximum order quantity for retail investor would be made public atleast 2 working days prior to Issue Opening Date that is by 16th Oct 2010 and it will be updated here accordingly.

Thanks for your visit.

Reply

Ravi mundra October 14, 2010

Khalid bhai, 2lac ka application retailers k liye start ho gaya kya?
I mean cil k ipo k liye laga sakta hu kya?

Reply

khalid October 15, 2010

Hi Ravi
Retailor investors ki limit increase karne ka proposal SEBI ne kiya hua hai , abhi implement nahi hua. CIL is good IPO , fi alloted you can have upto 30% premium as per market estimates.
Best of luck
Thanks for your visit.

Reply

Kunal October 15, 2010

Hi Khalid,

Any update on the lot size for retail investors yet ?

Reply

khalid October 15, 2010

Hi Kunal

Yeah Lot size is made public by Coal India today only and it is 25 shares minimum for retail investors. Apply for good gain. Best of luck.

Thanks for your visit.

Reply

Kal October 16, 2010

If I apply only for minimum amount of 25 shares, what is the chance of being alloted the shares? Do I have to pay the amount upfront? Is allotment preference given to people who buy in large quantities?
Thanks

Reply

khalid October 16, 2010

Hi Kal

As CIL IPO is biggest ever in Indian IPO history, chances are oversubscribing to many times. So the chances of allotment decreases accordingly. Chances of allotment also depend upon quantity of shares you applied, apply more and get more chace of allotment. As much as payment is concern, you have to pay full amount at the time of application.SO apply for good gain. Best of luck.

Thanks for your visit.

Reply

Kal October 16, 2010

Hi Khalid,

Thanks for your reply.
What about ABSA? Can you point me to a link of SEBI approved ABSA’s?
I’m unable to find any ABSA info on the SEBI website.

Thanks again for replying on a Saturday!

Reply

Kal October 16, 2010

Also wanted to know when Coal India will actually list on the bourses. If I dont get alloted I can atleast buy on the first day.

Reply

khalid October 17, 2010

Hi Kal

ABSA got approved from SEBI, its right but this ASBA (application supported by blocked amount) system is not so popular among the retail investors as there are lot of operational hassle involved in investing through the ASBA system. As for as listing is concern, it will be notified later on. Anyway best of luck.

Thanks for your visit.

Reply

abhay October 16, 2010

i want to invest in coal india ipo what is the minimum amount i have to invest and what ratio of share is chnce of getting in the minimum bid

Reply

khalid October 16, 2010

Hi Abhay

Minimum amount you have to invest for 1 lot of 25 shares is Rs 6125 and for 1 lot, chances of allotment will be very less. So better you apply for 16 lot of 25 shares which is the limit for retail investors. For this you have to invest Rs 98000. Chances of allotment will be bright for this segment. SO apply for good gain. Best of luck.

Thanks for your visit.

Reply

abhay October 16, 2010

what is the amount of cheque i have to give

Reply

khalid October 16, 2010

You have to give a cheque of Rs 6125 for 1 lot of 25 shares and Rs 98000 for 16 lot of 25 shares.

Reply

Neal October 17, 2010

If i apply for Coal shares by using my demat and also by using my father’s demat.
Should i get allotment of stocks for both.means same address for 2 demat account. if yes can i transfer those shares from my father’s account to my account?….

Reply

khalid October 17, 2010

Hi Neal

You apply Coal India IPO for both the demat accounts as their is no such restriction. After allotment you can transfer them too. Happy investing. Best of luck.

Thanks for your visit.

Reply

Buvanesh October 19, 2010

I have two demat accounts. One in ICICI and other in india infoline.
Can i apply for 400 shares in each account. Kindly help.

Reply

khalid October 19, 2010

Hi Buvanesh

I think you can apply if you have two different accounts. Best of luck.

Thanks for your visit.

Reply

Ravjot October 23, 2010

Dear Khalid
Its too late but for future it will be worthful for you.
you can not apply from both the accounts because both are yours and a retail investor can not apply for more than 400 shres and also a person can put a single appplication for a single PAN Crad.

Reply

khalid October 23, 2010

Hi Ravjot
I thought if a person can open two demat accounts with a single PAN card, so it would have posible to apply from both accounts. Anyway thanks for your clarification, it clears the doubt which i had.
Thanks for your visit.

Reply

{ 1 trackback }

Previous post:

Next post: