Coal India Diwali Gift to Investors on Listing at 40 percent premium
Coal India Ltd (CIL) which had seen a huge response to its recently concluded Initial Public Offering from investors got listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 4, 2010. In the initial trade itself it touched Rs 324.95 which was a perfect Diwali Gift for its retail investors, for whom after 5% discount the issue was priced at Rs 232.75 against Rs 245 to QIBs. CIL got listed at Rs 287.45 and closed at Rs 342.35 after reaching a high of Rs 344.75.
Retail investors who had received 199 shares at higher end had made a profit of Rs 92 per share on its debut taking the profit of Rs 18,300. It was a Diwali bonanza for HNIs and QIBs also who made a cool Rs 80 a share in the morning trade. The market capitalization of CIL stood at more than Rs 2.16 lakh crores
What next - CIL to move to Sensex List shortly?
Retail investors received Rs 199 shares in allotment, which gave returns of Rs 92 per share upon listing, taking total profit to Rs 18,308 (at Rs 324.95 a share). CIL witnessed very high volume in the morning trade itself In the morning trade itself CIL was trading at 324.60, up 32.49%, with volume of 15.80 crore equity shares on the National stock exchange. The market capitalization to the stock soared to more than Rs 2 lakh crore.
Reacting on its debut performance of the stock Uday Kotak VC & MD, Kotak Mahindra Bank said the listing was "way above expectation as he had only anticipated listing gains of around 20%. The Coal India listing was a indicator of things to follow as retail investors may flock in back into markets. "Coal India will be seen as one of the finest resource companies globally," he said.
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