Coal India makes spectacular debut

Coal India Limited Chairman Partha Bhattacharyya rings the bell at BSE during the listing of the company's IPO at the Bombay Stock Exchange on Thursday.  

It was a welcome Diwali gift for retail investors of Coal India (CIL), when the company’s shares got listed at Rs 287.75 and zoomed to a high of Rs 340 during mid-session on the Bombay Stock Exchange on Thursday.

Coal India (CIL), India’s largest coal producing company, has raised Rs 15,200 crore through its IPO at the issue price of Rs 245 a share, at higher end of the price band of Rs 225—245.

“Our small investors got good listing gains. These investors were allotted shares at Rs 232.75 a share, a discount of 5 per cent to the final issue price of Rs 245 and now we can see how much they have gained. It will be a rewarding investment for them,” CIL Chairman Partha Bhattacharyya told reporters.

Retail investors received 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). Even investors like high net worth and qualified institutional investors got a profit of Rs 79.95 a share upon listing.

“It was historic day not only for Coal India, but for the whole Indian capital market. We are happy with the listing and expect the stock to outperform ahead,” Mr. Bhattacharyya said.

CIL’s investors, buyers and sellers will be able to reap gains out of the whole process of CIL’s disinvestment, Mr. Bhattacharyya said, adding that the company is fundamentally very sound.

On the company’s future plans, Mr. Bhattacharyya said that the company will go ahead with its Rs 3,800-crore capital expenditure plan this year and Rs 4,600-crore capex plan in FY 12, which will be met through internal accruals.

“We are setting up 20 washeries and have already placed the first order. We expect to place orders for another two within this fiscal and tenders for 11 more washeries have been floated,” Mr. Bhattacharyya said, adding that the results of these activities will be visible in the next 2-3 years.

The company will use its cash reserves for overseas acquisitions and “we are moving in that direction,” Mr. Bhattacharyya said.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Dec 2, 2021 8:32:09 PM |

Next Story