Coal India - IPO Details from sharekhan

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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.

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