Skip to main content

Coal India IPO Review

coalindia
Coal India Limited, a Navratna PSU, is entering the capital markets with a public issue of 63 crore equity shares. This issue, slated to be the largest primary market offering in the history of the Indian Stock Markets, will garner around Rs. 15,000 crore.

Coal India is the world’s largest coal producing company, as well as the world’s largest coal reserve holder. The company has 471 mines across the country and manages over 80% of India's annual coal demand.

Details of the issue:
Issue Open: Oct 18, 2010 - Oct 21, 2010.
Issue Size: 631,636,440 Equity Shares of Rs. 10.
Face Value: Rs. 10 Per Equity Share.
Issue Price: Rs.225 - Rs.245 Per Equity Share.
Listing At: BSE, NSE.


Fundamental Details:

For FY10, the company reported total income of Rs. 52,592 crore with net profit of Rs. 9,834 crore, resulting in an EPS of Rs. 15.5. Comparing with NMDC, around a P/E of 16-17, the announced price band  of  Rs.225-Rs.245, is a  reasonably good price to invest for long term investors. A 5% discount offered for retail investors could add as an extra cushion factor. Investors can apply for this issue with a long term view and not for listing gains alone.

Comments

  1. Is it going to prick the bubble like
    Rpower Issue?

    ReplyDelete
  2. The price for this IPO hasn’t been fixed yet, The IPO will most likely open on the 18th October, and close on the 21st October.

    These were some of the more interesting things I found in the prospectus that Coal India has filed for its IPO, and this is no way is a comprehensive review.

    ReplyDelete
  3. The price band has been fixed between 225-245, which is reasonable. Long term investors can apply for this issue.

    ReplyDelete

Post a Comment

Popular Posts

Your Bill Amounts Are Going To Increase From June 1, 2016

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Union Finance Minister, Arun Jaitley, in his budget announcements proposed to impose a cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:



Phone Bills: Your phone bills are going to go up. So, pay a good 15 per cent now on service tax on phone bills.

Restaurant Bills :If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out. Though 0.5 per cent on a single bill may not mean much, frequent diners may end-up paying a lot during the year.

Travelling: You will have to pay more for air travel, as there is a service tax on tour operators and travel agents.

Moneycontrol Terminal - Streaming Live Quotes

Moneycontrol has introduced a new feature Moneycontrol Terminal - an enhanced version of real time price updates. Though there were live quotes provided by the website previously, the present form  gives a better update of live quotes of indices and stocks.

This terminal provides live streaming quotes for both NSE and BSE free. It also provides quotes for most of the indices and also the constituents/stocks of the indices in BSE and NSE.  The terminal also provides live news and other market news, which might be useful for traders. The hardware recommended is minimum of 1 GB RAM.

It would be better if stock of any choice could be added ( market watch of a set of stocks ), which would be easier to track one's trading positions. Anyway, this is a better alternative for people who don't have access to any trading software, to view live action of the markets.




You could just try the same here at Moneycontrol Terminal


NSE Level 3 Data

Before we get into details of NSE Level 3 Data, it is important to first understand the basic operations of the stock market.  All publicly traded equities have a bid price and an ask price when they are bought and sold. The bid is the highest price a trader( or an investor) is willing to purchase a stock. The ask is the lowest price in which he is willing to sell a stock.


Depth of the Market(DOM):Looking at a Level 1, Level 2 or Level 3 quotes can give a trader, a basic idea of how a stock is performing at any given time.

Level 1 Market Data provides the basic market data which includes Bid price, Bid size, Ask price and Ask size.

Level 2 Market Data provides more information than Level I data. Mainly, it doesn't just show the highest bid and offer, but also shows bids and offers at other prices. Now level 2 provides market depth data upto 5 best bid and ask prices.

Level 3 Market Data provides market depth data upto 20 best bid and ask prices .  This primarily used by brokers and ma…