Coal India Limited issue received excellent response even in the HNI category where the issue was subscribed 25.4 times and the retail category where the oversubscription was 2.31 times. It was only the employee category where the subscription was a mere 0.10 which did not receive adequate response. The overall subscription was 15.28 times. The issue has garnered bids for a total of 965.02 cr shares valued at Rs 2,36,430 crs marking an extremely successful issue.

Details of the subscription by various categories of investors are as follows: –

The overall subscription is in line with what was expected and the Diwali bonus that was talked about in the article will be further sweetened on two counts. The first is the quantity of shares that will be allotted have increased substantially from the conservative expectation of 133 shares to just about 190 shares. Secondly the demand generated has increased the market price substantially and against the Rs 260 one can now safely assume a price of Rs 270-275. Taking our calculation of 190 shares, a profit of Rs 42 per share including the discount of Rs 12 we are talking of just about Rs 8000.

EXCELLENT Diwali Bonus!

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.