Wishing you all a very prosperous new year, Samvat 2067
Happy Diwali!
November 5th, 2010
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Coal India IPO Listing Morning
November 4th, 2010
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Spectacular debut: sparkling diamond and great Diwali gift to investors
Coal India made a spectacular debut today on the bourses and had a fantastic listing on the BSE and NSE today. The company had a listing ceremony at the BSE and the listing price was Rs 287.75. On the NSE the opening price was Rs 291. The high in the first three hours of trading was Rs 340 on both the exchanges. The low on both the exchanges was the opening price itself which was Rs 287.75 on the BSE and Rs 291 on the NSE.
| Exchange | Open | High | Low | Close | Net Change | % gain | Volume | Wt Avg |
| BSE | 287.75 | 340.00 | 287.45 | 333.15 | 88.15 | 35.98 | 136722690 | 323.68 |
| NSE | 291.00 | 340.00 | 291.00 | 333.50 | 88.50 | 36.12 | 350930011 | 323.24 |
| Total | 487652701 |
The trading volumes have been very brisk and the first three hours of trade saw a volume of 48.76 cr shares being traded. This is 77% of the IPO size which was 63.16 cr shares. The weighted average is around Rs 324 and the share is holding steady in the Rs 325-335 range.
Investors have made a killing in this share and assuming that they have sold at the average price of Rs 325 they have made a profit of Rs 80 plus the retail discount of Rs 12.25 which on an allotment of 199 shares results into a cool profit of Rs 18,357.75 per application of Rs 98,000 resulting into a percentage gain of 18.73%. This is a great Diwali gift to all investors and will help in the divestment process of the government going forward.
Gravita India IPO Subscribed
November 4th, 2010
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Receives record subscription from HNI’s and excellent response from retail investors
Gravita Limited which had tapped the capital markets with its IPO for 36 lakh shares received excellent response and was oversubscribed 43.88 times. The issue was in a price band of Rs 120-125 and the issue would have raised Rs 45 crs at the top end of the price band. In recent times five issues have seen subscription by HNI’s cross into three digits but the figure of 182.52 times is indeed huge by all standards. Even if one were to consider the size of the issue as being small and overlook the subscription figure or give it lower weightage, the subscription figure stacks up very well for the company.
Recent examples where the HNI subscription figure crossed into three digits are when ARSS Infrastructure Projects Limited was subscribed 124.52 times. This issue was open during December 2010.The second instance was Infinite Computer Solutions was subscribed 106.01times. This issue had opened in January 2010. The next instance was of Man Infraconstruction Limited which was subscribed 104.57 times, and this issue was open for subscription in February 2010. The fourth instance was of Career Point Infosystems Limited which was subscribed 101.93 times and this issue was in September 2010. The last instance was of VA Tech Wabag also in September 2010, where the subscription level was 100.98 times.
The cost of funding for HNI’s who have subscribed for 182.52 times bid for 9,71,91,900 shares against their reservation of 5,32,500 and the total issue size of 36 lakh shares. An investor in this category who has leveraged his money and borrowed for subscription would effectively pay Rs 56.25 per share as interest cost. This calculation is based on the assumption of 10% interest for a period of nine days. The cost is huge and is likely to see some withdrawals in the next couple of days.
The details of the subscription level in various categories are given below: –
| Category | Shares Offered | Shares Subscribed | Times |
| QIB | 1775000 | 10714700 | 6.04 |
| NII | 532500 | 971919900 | 182.52 |
| Retail | 1242500 | 46394750 | 37.34 |
| Employee | 50000 | 58500 | 1.17 |
| Overall | 3600000 | 154359850 | 42.88 |
The company has garnered support for 15.43 cr shares or total bids are for Rs 1,929.49 crs against the amount to be raised of Rs 45 crs.
This website had recommended this stock and the same can be accessed by clicking here.
