Coal India to debut at Rs 280-300: Analysts | business | Hindustan Times
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Coal India to debut at Rs 280-300: Analysts

business Updated: Nov 03, 2010 12:59 IST

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 would witness a remarkable debut on Dalal Street, which would uplift the broader market sentiment. Investors are likely to earn smart gains from the listing, which should be in the range of Rs 280-300," Geojit BNP Paribas Financial Services AVP Gaurang Shah said.

The issue price of the country's largest IPO has been fixed at Rs 245 a share -- the higher end of the price band of Rs 225-245.

The Bombay Stock Exchange's Sensex, which is hovering in and around 20,500-mark, has its eyes all set on CIL's listing, which is likely to drive the market to some cheerful note.

Besides, the marketmen also feel that CIL's listing will give the much needed push to the broader market, as it will see the increased liquidity with the investors getting back the refunds of the amount blocked in the subscription.

"Coal India is expected to list at about Rs 300 on the bourses. The market will see sufficient liquidity as the investors blocked cash will be released, easing pressure," CNI Research CMD Kishore P Ostwal said.

The public-sector company had won the confidence of many investors with its blockbuster IPO, through which the government is divesting 10 per cent of its stake.

The IPO had garnered a robust demand of over 960.36 crore shares, as against 63.16 crore equities on offer, which translated into total demand worth Rs 2.35 lakh crore -- the highest upfront payment for any IPO in the country.