Coal India IPO fully subscribed on third day


On the strength of good response the Initial Public Offer (IPO) of Coal India IPO has been has been fully subscribed on October 19, 2010 the second day of the issue as per authoritative sources . The Company has received bids for 99.12 crore equity shares against which the issue size is 63.16 crore shares. Thus the portion reserved for QIBs has been subscribed to about 3.4 times.

On the strength of good response the Initial Public Offer (IPO) of Coal India IPO has been has been fully subscribed on October 19, 2010 the second day of the issue as per authoritative sources . The Company has received bids for 99.12 crore equity shares against which the issue size is 63.16 crore shares. Thus the portion reserved for QIBs has been subscribed to about 3.4 times.

The subscription by the Retail investors is at 0.35 times and non-institutional investors' at 0.54 times of the issue size reserved for them. The current issue is the largest ever money raised by an Indian company of Rs 15000 crores, through an IPO. Post issue the government's holding will remain at 89.99%. The IPO will close on October 20 for QIBs and October 21 for non-QIBs.

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 Mangers to the issue.

SBI Bond oversubscribed


Meanwhile the State Bank of India's bond sale, making its debut, got oversubscribed by 17 times on the opening day of the issue itself. The reason for the over subscription is the high rate of interest offered on the bonds. This is the first retail bond sale by SBI for Rs 1000 crores. The bond sale opened on October 18, 2010 closes on the 25. The offer for issue of bonds for Rs 500 crores with a option to issue additional Rs 500 crores aggregates Rs 1000 crores. And carry interest rate of 9.25 for 10 years amd 9.5 per cent for 15 years. However, unlike ongoing Infrastructure Bonds, the interest on SBI bonds is taxable, but not subject to TDS. The investors themselves have to include the interest income while filing their IT Returns.

The bonds are to be listed on the National Stock Exchange of India (NSE). The application size for retail investors in the issue is Rs 5 lakh, for High Networth Individuals (HNIs) Rs 250 crore and for qualified institutional buyers (QIB) it is Rs 250 crore. The bonds are to be issued on the basis of first come first serve basis.


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