Coal India Limited which is tapping the capital markets with an offer for sale of 63.16 cr shares in a price band of Rs 225-245 received excellent response from QIB investors on the last day for QIB subscription. The issue closed for QIB’s today and closes for all other categories of investors.

On the last day QIB portion was subscribed 24.7 times with a total demand of 701.94 cr shares against an offer of 28.42 cr shares. Within the category, FII’s bid for 493.38 cr shares, domestic financial institutions and banks bid for 180.75 cr shares and Mutual funds bid for 26.69 cr shares.

The total bids at 701.94 cr shares is valued at Rs 1,71,975 crs which is higher than the market capitalisation of Coal India post listing of 1,54,751 crs. This excellent response is testimony to the fact that the issue offered value to investors and is reasonably priced offering appreciation on listing.

With one more day to go, HNI portion was subscribed 2.89 times and retail portion 1.1 time. The employee portion has received a mere 4% so far and there seems some sort of boycott by the employees of the company and this portion would remain undersubscribed. Any under subscription in the employee category would be added to the respective categories in the same proportion.

With one day to go the overall subscription is 11.85 times. In my estimate the total should move up to between 15 and 16 times overall. More on Coal India subscription tomorrow evening.