22 October, 2010

Coal India IPO what You & I can DO with it

Coal India's initial public offering (IPO) drew bids for at least Rs 2.3 lakh crore, or $54 billion in cash—enough to build 25 airports similar to the sparkling New Delhi one.

"SEBI asked us to offer investors an exit option until October 25 after errors were pointed out in its prospectus" said. chairman Partha Bhattacharyya.Finance Director A.K. Sinha said accretion in stock and other income got interchanged in the company's standalone financial statement printed in the prospectus and it had no impact on the company's total income and profit figures
It Joined the league of top  state-run companies in the world such as China's Agriculture Bank that sold $22 billion worth of shares and Brazil's Petrobras that raised $70 billion

Success of the latest issue takes total fund-raisings by the state to Rs 17,500 crore this year, giving hopes that its Rs 40,000-crore target may be surpassed comfortably, if conservative pricing is followed.

The response to this IPO indicates to us the investors' eagerness to buy if shares are priced reasonably.

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