Coal India oversubscribed 1.57 timesBy IANS
Tuesday, October 19, 2010
MUMBAI - State-run Coal India’s $3.5 billion dollar initial public offering (IPO), the biggest in the history of Corporate India, was subscribed 1.57 times Tuesday.
The issue at a price band of Rs.225-Rs.245 a share, received 991,179,700 bids against 631,636,440 shares on offer for sale till 4 p.m., according to data made available by the stock exchanges.
At the higher end of the band, the IPO size will be to the tune of about Rs.15,400 crore, making it the largest IPO in the history of Indian capital markets.
The institutional segment of the IPO was fully subscribed in the morning itself.
The offer closes Oct 21 for retail and non-institutional bidders, while for large financial institutions it would end a day earlier. The company is set to list on the stock exchanges Nov 4.
The mega public float, experts believe, is expected to attract foreign investors and lead to a surge in dollar inflows, pushing the Indian rupee further up. It could cause a liquidity crunch for a short while and lead to correction in the secondary market.
Coal India is the world’s largest coal miner, producing over 80 percent of India’s coal through 471 mines across eight states. It produced 431.26 million tonnes of raw coal in 2009-10.