CIL investors gain Rs 6,489 cr on back of big-bang debut
Investors in Coal India's mega-public issue grew richer by a whopping Rs 61,489 crore today after the coal major made a big-bang debut on the bourses and closed at a premium of about 40 per cent over the IPO issue price of Rs 245 per share.business Updated: Nov 04, 2010 19:15 IST
Investors in Coal India's mega-public issue grew richer by a whopping Rs 61,489 crore today after the coal major made a big-bang debut on the bourses and closed at a premium of about 40 per cent over the IPO issue price of Rs 245 per share.
At the end of the first day, total market capitalisation of the coal behemoth stood at Rs 2,16,240.73 crore. This was Rs 61,489 crore higher than its valuation of Rs 1,54,750.92 crore on the basis of the IPO issue price.
As a result, CIL is now the fourth most valued Indian firm, behind only Reliance Industries, ONGC and SBI.
Coal India raised Rs 15,200 crore through its maiden initial public offer, the biggest issue in the history of the Indian capital market, which was over-subscribed 15.3 times.
The issue price of the IPO was fixed at Rs 245 a share --the higher end of the IPO price band of Rs 225-245.
Coal India today listed with a gain of 17 per cent on the Bombay Stock Exchange and settled the day at Rs 342.35, up by 39.73 per cent. At one point of time, it was trading at Rs 344 a share.
"This is one of the biggest success stories in listing of shares on stock exchange," Coal Minister Sriprakash Jaiswal said.
"The response from investors is on expected lines. Such a response is due to a combination of factors. The company's fundamentals are very strong and it has a great future ahead," he added.
The whole Coal India IPO was a fairy tale, given the quality of the company, pricing of the issue, wide subscription from all kind of investors and a super impressive listing, SMC Globals Head of Research Jagannadham Thunuguntla said. "All has fallen perfectly in place," he added
Boosted by the firm listing of CIL and positive overseas sentiment, the BSE benchmark Sensex today surged by 428 points to an all-time high of 20,893.57 points.
The investors, who grew richer by Rs 2 lakh crore today, have all the more reason to offer prayers to the Indian goddess of wealth, Lakshmi, who is worshipped on the occasion of Diwali.
"It was a historic day not only for Coal India, but for the whole Indian capital market. We are happy with the listing and expect the stock to outperform," CIL Chairman P S Bhattacharyya told reporters after the listing ceremony at the BSE.
Equity analysts believe that in the coming days, the stock is likely to see good participation.