Coal India shines with 40% more glitter on listing

"Landep News"

The Coal India which boasts a position of Navratna among the Indian companies, has made its debut on the stock market with more than street expectation gaining 40% on the issue price.

The investors lapped up the shares when it was opened for trading in the stock market the price shot-up to 340 from the issue price of 245.

This is beyond any prediction and the company had made the state richer by 3.4 billion dollars.

This was only the 10% of the Kolkata based mining company and the grand debut has made the investors richer by 40%. Many must have purchased it on listing too. However the trade pundits have pronounced it as a long term share and the demand for the shares has remained strong.

The IPO itself was a huge hit with small and retail investors applying twice as much the shares allotted for them whereas the financial institutions were not at all behind, registering an oversubscription figure by 24.70.

Coal India is the leading coal producer in India providing 80% of the total coal produced in India with a span of 471 mines in 8 states while the company itself is based in Kolkata.

It leads the international counterparts and competitors like Peabody Energy of USA and Chinese Shenhua Energy. Still India needs to import coal from foreign as the rise in consumption is increasing by 20%.

Some more state-owned sectors going public are Power Grid with a second offer, Hindustan Copper, Manganese Ore and Steel Authority of India with the money earned from the proposition going to the social reforms programmes and also reducing the budget deficits of the country.

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