Coal India IPO Allotment status
The initial public offering (IPO) of Coal India Ltd at Rs 225 to 245 per share was oversubscribed by 2.31 times by retail investors The empowered Group of Ministers (EGoM) headed by the Union Finance Minister, Pranab Mukherjee, met on October 25, 2010 and decided the issue price at Rs 245 a share. While the ratio of allotment status has not been announced, past experience taking into the number of times the IPO has been oversubscribed indicate the allotment ratio might be kept at 1 : 2 or 1 :3 for applications up to Rs 1 lakh. And it could also be fixed as 1 : 1 for applications for less than 100 shares. The allotment ratio is expected to be announced soon.
Coal India IPO Allotment Date/Listing
Coal India's shares is to be be listed on the 4th November 2010. It is expected that the allotted shares are likely to be credited to demat accounts from the November.1, 2010. Portion reserved for Employees was subscribed in the Coal India IPO, to the extent of 10 percent only The unsubscribed portion may also be pooled to retail investors due to Employee Trade Unions opposing the disinvestment of Coal India.
The institutional portion of the Coal India IPO has been subscribed nearly 25 times and many analysts believe that the money would be deployed to buy Coal India shares from the secondary market when it gets listed on November 4, 2010. Many analysts believe that the scrip will be listed at a premium of 35 to 40% over its issue price on listing on November 4, 2010.
Power Grid Corporation, FPO Next to hit Capital Market
Next big PSU IPO to hit the capital market is Power Grid Corporation, which is expected to be open for public subscription on November 9, 2010.