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Coal India OFS oversubscribed 1.04 times

Our Bureau Mumbai | Updated on January 24, 2018

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Five minutes prior to closing of the Rs 22,612.58 crore, Coal India offer-for-sale (OFS) was just oversubscribed at 1.04 times with orders for 66,20,45,720 shares entered.

Of this, non-retail investors had subscribed to 60,83,62,813 shares or 1.2 times the non-retail portion. However, retail investors did not find value in the OFS with the retail portion being subscribed to the extent of only 42.50 per cent or 5,36,82,907 shares.

The indicative price for non-retail portion was Rs 358.48 per share, while the indicative price for retail investors was Rs 360.65 per share.

Coal India scrip ended at Rs 360.85, down 3.81 per cent. On the NSE, the scrip fell 3.68 per cent to Rs 361.15.

Till 2.55 pm

The OFS was subscribed only 57.24 per cent till 2.55 pm, about 35 minutes prior to market close, with orders for 36,15,51,564 shares entered. Of this, non- retail investors had subscribed to 32,33,68,618 shares, while retail investors had punched in orders for 3,81,82,946 shares.

The indicative price for non-retail portion was Rs 358.35 per share, while the indicative price for retail investors was Rs 360.12 per share

Till 1.55 pm

The OFS was subscribed only 29.81 per cent till 1.55 pm with orders for 18,82,98,185 shares entered. Of this, non-retail investors had subscribed to 16,44,75,868 shares, while retail investors had punched in orders for 2,38,22,317 shares.

The indicative price for non-retail portion was Rs 358.49 per share, while the indicative price for retail investors was Rs 361.50 per share.

The floor price for the OFS has been set at Rs 358, with a five per cent discount for retail investors on their bid prices.

Till 11.05 am

The issue was subscribed 2.86 per cent with 1,80,33,834 orders entered. Of this, non- retail investors had subscribed to 1,41,55,062, while retail investors had punched in orders for 44,97,114 shares.

Till 9.55 am

The Rs 22,612.58 crore offer-for-sale (OFS) of Coal India got off to a slow start on Friday morning with a subscription of 0.45 per cent.

Of the total number of shares on offer of 63,16,36,440 (over 63.16 crore), bids for over 28.34 lakh shares had been entered on the stock exchanges.

Retail investors had entered orders for over 4.61 lakh shares at an indicative price of Rs 359.70 per share. Non-retail investors had entered orders for over 23.73 lakh shares at an indicative price of Rs 358.23 per share.

The offer size for retail investors is over 12.63 crore shares, while the non-retail portion is over 50.53 crore shares. Retail investors will be allocated shares at a discount of five per cent to the bid price entered by them. The company had declared a floor price of Rs 358 per share on Thursday.

DSP Merrill Lynch, Credit Suisse Securities (India), Deutsche Equities India, Goldman Sachs (India) Securities, J M Financial Institutional Securities, Kotak Securities and SBICAP Securities are the selling members to the issue.

Piyush Jain, Equity Research Analyst, Morningstar India, said: "Coal India OFS will increase the free float and bring in new investors in the company. There is adequate demand for the paper as it is one of the best-in-class coal mining asset in India. Coal India's mining costs are one of the lowest in the world.We believe investors would look at Coal India for attractive dividend yield. Last year, we had made a strong statement for looking at Coal India from capital gains perspective. Stock has rallied from about INR 250 per share levels of last year and is currently trading near our fair value estimate of INR 380 per share. Stock presents an uncertainty with government ability to fast track rail connectivity projects. However, we believe Coal India provides a good cash return opportunity for dividend and long-term focused investors."

Published on January 30, 2015

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