The Coal India IPO which has opened for subscription on October 18, 2010(today) has kept stock market experts busy. Even though most of them are bullish on Coal India IPO, some of the experts are negative on the country’s largest IPO. One such example is Reliance power, which was the biggest IPO raised more than 11K Crores via IPO.
The Indian government and SEBI has fixed a price band at Rs 225-245 a share and They are offering 63.16 crore shares via this IPO issue, which aims to raise more than Rs 15,000 crore through this IPO. It closes on Oct 21st 2010.
Citigroup Global Markets, Deutsche Equities, DSP Merrill Lynch, ENAM Securities, Kotak Mahindra Capital and Morgan Stanley are the lead managers for this issue.
According to some of the analysts Coal India Limited(CIL) IPO is priced attractively and the one can invest on it. But in an Interview, Sanju Verma, Centrum Broking said that she won’t not subscribe to Coal India Limited IPO. She reasoned that though CIL is 40% cheaper than peers on EV/EBITDA, only 18% of it is top quality coal.