Coal India IPO the biggest primary market-raising company in the history of the markets has raised a huge amount of investor interest.The investor is barraged with news,opinions,analysis,reviews,overview about the Rs 15,000 crore ( $3.5bb) money-raising IPO. Coal India Limited (CIL) will become the largest Coal Company to be listed in the world and the 7th largest in the Indian market with a market cap of $35 Billion. The Analysis of the Company shows it to be a very safe investment at a cheap valuation. While Risks and Negatives exist for Coal India like any other investment, the substantial discount over global peers makes it a must-buy. Here are some of the best news, analysis, and facts about the IPO
1) Price Band and Allocation by Investor Type– The company will sell in a price band of Rs 225-245 with a 5% Discount for Retail Investors and Employees.CIL will offer 63.16 crore shares and 10 percent of the issue has been reserved for employees. 45% of the offer will be for Funds,13.5% for Non-Institutional Large Investors, and 31.5% for Retail Investors (Maximum subscription of Rs 1 lakh)
a) Govt fixes Coal India IPO price band at Rs 225-245/share
b) Coal India IPO: Price band Rs 225-245: Rediff.com Business
2) Valuation and Advantages – The Overwhelming Opinion is that the Coal India IPO is cheaply valued and should lead to immediate listing gains for investors. The P/E for CIL will be around 16 times Trailing P/E compared to 18-25x for comparable peers. Here is some of the opinion about the valuation.
a) Coal India IPO set to ride the bull market
b) Coal India IPO: Expect 30% Returns on listing Day:
c) Street divided on Coal India’s IPO pricing
d) FII interest in Coal India IPO to disturb forex market
e) Confident market will like Coal India’s story, pricing
f) CARE assigns ‘IPO Grade 5′ to Coal India’s IPO
3) Risks and Disadvantages – Unfortunately not a lot of information about the Company on this account. Here is my take on the risks and negatives of the Coal India IPO.
4) Facts and Overview about Coal India – The Company has a lot of information like being the Biggest Coal Producer in the World, Largest Reserves in the World, etc. etc. Here is the facts list here
a) Facts and Figures about Coal India from Reuters
b) Coal India
c) World Coal Statistics
5) News about Coal India
a) See Coal India IPO as a game-changer for India Enam Sec
b) Grey market bets big on Coal India issue
c) CIL IPO sans anchor investor
d) Coal India’s 15k cr issue may cause money mkt stress: Experts
d) MFs create cash ‘buffer’ for a bigger Coal India pie
e) CIL unions cancel strike plans, to observe protest week
f) Financiers ride high on Coal India IPO
g) Coal India to spend $1.2 billion on overseas buys
Summary
Coal India will generate a lot of heat and dust till the IPO gets listed on the markets which will be in the first week of November 2010. The sheer size of the issue will make it the only topic of interest in the coming weeks for the Indian Stock Market with global and local issues being sidelined.
