The price at which shares of Coal India will be allotted to all categories of investors has been finalised at Rs 245. The price band was Rs 225-245 and the issue received excellent response being oversubscribed 15.28 times. Through the IPO the government would have raised Rs 15,475 crs and the market capitalisation of the company at just short of Rs 1,55,000 crs would make this the 7th highest market cap company after Reliance Industries, ONGC, TCS, State Bank of India, Infosys and NTPC.
NTPC which is currently at number 6 with a market capitalisation of Rs 1,70,475 crs is in all probability likely to lose this position the day Coal India is listed. This is because based on the current premium which is fluctuating between Rs 37-42 would take the price past Rs 280-285 and make the market capitalisation between Rs 1.77 lakh crs and Rs 1.80 lakh crs. This price would actually push Coal India Limited to the 5th spot ahead of even Infosys which had a market cap of Rs 1.72 lakh crs based on its closing price of yesterday.
This would push Coal India’s case for inclusion in the benchmark indices at an early date.