Coal India IPO Subscription using Subscription Number

Posted by on Oct 19, 2010 | Leave a Comment

Coal India IPO (initial public offering) for subscription opened on Oct 18 and close on Oct 21, 2010 and there was a lot of excitement in the media as estimated about its subscription numbers.

The IPO of India’s largest Coal India Ltd received bids for around one-third of its shares on first day. Get details of Coal India IPO Subscription, using Subscription Number.

Coal India IPO Subscription using Subscription Number. Coal India IPO Subscription has been started so start to get Coal India IPO Subscription using Subscription Number of Coal India IPO. Read more to know about Coal India IPO Subscription.

Around 0.34 percent that means funds worth over Rs 5,200 crore has been subscribed on its opening day on October 18 in the country’s biggest Initial Public Offering (IPO) of Coal India Limited prompting market players to predict how much the final book size would be when the issue closes on Thursday, 21 October 2010.

On Monday evening, total bids for 21.3 crore shares of the PSU coal giant were shown on the NSE website, corresponding to about a third of the total shares on offer. The book size is a little over Rs 5,200 crore with most of the bids coming in at the higher end of the Rs 225-245 per share price band.

Under the new rules, experts said that it make compulsory for all the bidders – retail, non-institutional as well as institutional – to put in their full bid amount, even if that fund is actually blocked in the bidder’s bank account, a 34% subscription on the opening day is a good response.

Previously, when retail investors were to put in full bid amount, institutions like mutual funds, insurance companies and FIIs were allowed to bid with just 10% margin money. Market players said the Coal India subscriptions should not be compared with the record subscriptions in previous mega offerings from ONGC and Reliance Power since there has been a complete change of IPO bidding rules over the last few years.

As per sources, CIL shares are currently commanding a premium between Rs 32 and Rs 33 over the top end of the price band in the unofficial markets of Gujarat and other places. Estimated to mobilize over Rs 15,000 crore is the offer of Coal India making it the largest one in India and the institutional bidding will close on Wednesday, retail book will close the next day.

Partha S Bhattacharyya, chairman of CIL indicated on Monday that 1% of the IPO, which is earmarked for employees, may not be fully subscribed. “Due to opposition by two unions, the response from employees is not too good. There could be some unsubscribed portion,” he added. Commenting on the future potential, Bhattacharyya said that the coal behemoth is now giving thrust on coal washeries, which would increase the calorific value of coal.

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