The retail portion of the Coal India IPO was oversubscribed by 2.31 times. Some analysts feel that allotment ratio might be fixed at 1:2 or 1:3 for those who have invested upto 1 lakh and 1:1 for investors who have subscribed for less than 100 shares. The allotment ratio for Coal India IPO is expected to be officially announced soon.The Coal India IPO had a lot size of 25 shares.
The only portion that was undersubscribed in the Coal India IPO, was the portion reserved for employees that was subscribed only 0.1 times or 10 per cent. This was because the Employee Trade Unions have opposed the disinvestment of Coal India and had instructed their members to not apply for the Coal India IPO. Some analysts believe that this unsubscribed portion will also be alloted to retail investors. Hence the loss of Coal India employees will be a big gain for retail investors.
Coal India IPO Allotment and Listing
Coal India’s shares will be listing on the 4th November 2010 and the alloted shares are likely to be credited to demat accounts from the 1st November.
After Coal India IPO ,the next big PSU IPO that is lined up is by Power Grid which plans to raise almost Rs 8,000 crore issue.The Power Grid IPO is expected to open on November 9 , 2010.
Read more : History of Coal India IPO
The state run PSU Coal India has surpassed the previous record set by Reliance Power’s IPO, which had attracted bids valued over Rs 2.05 trillion. Merchant bankers have indicated that more than 15 lakh retail applications have come in for the Rs 15,000 crore issue.
Illegal mining by the mafia and extortion by Maoists is one of the drawbacks of Coal India’s business and investors must be vary of these negative triggers.