Coal India IPO to hit markets on October 18, 2010

The Initial Public Offering (IPO) of COAL INDIA Ltd will hit markets on Monday - October 18, 2010. The company is coming with Public offer of 631,636,440 equity shares of face value of Rs. 10 each for cash at a price band of Rs.225 to Rs.245 through 100% book building process.

The Minimum Bid Size is 25 Equity Shares and in multiples of 25 Equity Shares. The Maximum Subscription Amount for Retail Investor is Rs.100000.

CRISIL has assigned an IPO Grade 5 to Coal Indid Ltd IPO. This means as per CRISIL company has 'Strong fundamentals'.

Citigroup Global Markets India Private Limited, Deutsche Equities (India) Private Limited, DSP Merrill Lynch Limited, ENAM Securities Private Limited, Kotak Mahindra Capital Company Limited and Morgan Stanley India Company Private Limited are the Book Running Lead Managers to the issue.

Kotak Securities Limited is the syndicate member to the IPO. Link Intime India Private Limited is the registrar to the company.

Coal India Limited is the largest coal producing company in the world, based on raw coal production of 431.26 million tons in fiscal 2010. Coal India produce non-coking coal and coking coal of various grades for diverse applications.As of March 31, 2010, Coal India operated 471 mines in 21 major coalfields across eight states in India, including 163 open cast mines, 273 underground mines and 35 mixed mines (includes both open cast and underground mines). They also operated 17 coal beneficiation facilities with an aggregate designed feedstock capacity of 39.40 million tons per annum. Coal India's major consumers are the power and steel sectors. Others include cement, fertiliser, brick kilns etc.

The IPO closes for subscription on October 21, 2010.

Source : Equity Bulls

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