State-run Coal India (CIL), which garnered Rs 15,200 crore through its initial public offer (IPO), is likely to make a powerful debut in the range of Rs 280-300 on the bourses, thereby giving a boost to the broader market, say analysts.
“Coal India is likely to witness a remarkable debut on Dalal Street, which would lift the broader market sentiment,” Geojit BNP Paribas Financial Services AVP Gaurang Shah said. “Investors are likely to earn smart gains... the listing should be in the range of Rs 280-300.”
The issue price of the country’s largest IPO has been fixed at Rs 245 a share — the higher end of the Rs 225-245 price-band.
The listing is like to bring further cheer to the Bombay Stock Exchange Sensex, which is hovering around the 20,500-mark.
Marketmen feel CIL’s listing will boost the broader market, as cash sent in for subscription by investors gets freed bringing in greater liquidity.
“Coal India is expected to list at about Rs 300 on the bourses,” CNI Research CMD Kishore P Ostwal said. “The market will see sufficient liquidity as the investors blocked cash will be released, easing pressure.”