Coal India - IPO Details from sharekhan

CIL-IPO-131010.pdf (128 KB)

Issue opens : October 18, 2010
Issue closes for QIB : October 20, 2010
Issue closes : October 21, 2010
Issue size : Rs13,917 crore-Rs15,154 crore(after adjusting for 5% discount to retail investorsand employees)
Shares outstanding : 631.6 crore
Issue size : 63.16 crore
Employee portion : 6.31 crore
Net issue size : 56.84 crore
QIB portion : At least 28.4 crore equity shares
HNI portion : Not less than 8.5 crore equityshares
Retail portion : Not less than 19.9 crore equityshares
Price band : Rs225-Rs245 per share
CIL is a quality public sector unit that is well positioned to exploit the growing demand-supply gap for coal in India due to its huge reserves, strong balance sheet and initiatives taken to improve the consistency of output (through investment in coal washeries). On a rough-cut basis, we expect the company to show an earnings growth of over 20% in the next three years. At the offer price band of Rs225-245 the stock is offered at 14.5-16x FY2010 earnings which appears attractive for a company that has strong earnings growth outlook, high return ratios (return on equity [RoE] and return on capital
employed [RoCE] in excess of 30%) and a high level of cash on the books.
Invest with a view to hold 3 years. No significant listing gains expected.

0 comments:

Disclaimer & Privacy Policies

(c) Mrs. Ruby Christy. This site and contents are owned by Mrs. Ruby Christy;
Use of this website and/or services offered by us indicates your acceptance of our Disclaimer& Privacy Policies.
Information and opinions provided on this website (www.investchips.com) has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. Investchips.com and its affiliates, information providers or content providers and R.John Christy and his Family shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this website or feeds, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. Investchips.com,its affiliates, information providers ,content providers and R. John Christy and his Family shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this website. Any action you choose to take in the markets is totally your own responsibility. Investchips.com and R. John Christy and his Family will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Opinions expressed by R. John Christy are his own and not of his past, present and future employers.
The DoubleClick DART cookie is used by Google in the ads served on this websites displaying AdSense for content ads. When users visit this website and either view or click on an ad, a cookie may be dropped on that end user's browser.

Google, as a third party vendor, uses cookies to serve ads on this site.
Google's use of the DART cookie enables it to serve ads to your users based on their visit to this site and other sites on the Internet.
Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.
www.investchips.com never collects any personal information of visitors.

WWW.INVESTCHIPS.COM