Update on COAL INDIA IPO

Retail segment of COAL INDIA IPO was subscribed 2.31 times. If you have used Rs 98000 and bid at highest price band of Rs 245 (as I had advised), you have bid for 400 shares and you may expect to get 182 COAL INDIA shares at Rs 232.75 each...Rs 42360.5 will be deducted from your IPO account / ASBA linked account and rest (Rs 55639.5) will be refunded to you.

Listing will happen on Nov 4th and I am expecting that it will open near Rs 270 and can go up to Rs 300, which will give you a healthy gain of of 26.3% in a few days, which is good.

If you had not bid at the upper price band, chances of getting the shares alloted to you are less. You may get more than 182 shares, provided some of the bid applications are rejected or some of the bids at prices lower than 245 are not granted.
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On Wed, Oct 13, 2010 at 12:27 PM, powerfulpicks <powerfulpicks@gmail.com> wrote:

Coal India IPO is priced between Rs 225-245 per share, which works out to a P/E of only 12 at the higher end of the price band. Coupled with that is the fact that due to the increased focus on power sector, coal consumption and demand in India is set to grow at a rate of 10-12% every year for the next 6-8 years. 

Coal India's coal price is quite cheap, giving it a lot of head room for periodic raises in price and being the market leader (80% market share in India), CIL can afford to do that. CIL has been primarily producing unwashed coal and has plans to move into washed coal for around 50% of its annual production over a period of next 6-7 years. Washed coal is in higher demand and commands much higher rates and thus gives at least 50-60% higher margins. CIL can easily trade at 310-315 on listing day, giving investors a potential gain of 28% in just over 2 weeks. Subscribe to CIL IPO at upper end of the price band in the retail segment; if you do not have separate IPO funding available, you can sell off some of your portfolio, which is currently in profit and go for this IPO. It opens on Oct 18 and closes on Oct 21 and retail investors get a discount of 5%