Coal India surges 39 percent on debut

MUMBAI - The share price of state-run Coal India surged to Rs.340, up 38.77 percent from the issue price of Rs.245, on the first day of trading at the Bombay Stock Exchange (BSE) Thursday.

Trading in the world’s largest coal miner, which raised Rs.15,200 crore through an initial public offering (IPO) last month, opened at Rs.287.75, up 17.44 percent from the issue price.

In just over an hour of trading, the scrip surged to Rs.340, beating most analysts forecasts.

The scrip attracted a record volume as investors scrambled to buy shares in the firm which produced over 80 percent of India’s coal at 471 mines across the country.

The total market capitalisation of the firm rose to Rs.2,13,177 crore in the late afternoon trading.

Coal India’s IPO, the biggest in the nation, was subscribed 15 times. Listing of Coal India has boosted liquidity in the market, pushing the BSE benchmark Sensex nearly two percent higher.