India’s top companies have bid aggressively in Coal India’s recently concluded IPO. India’s largest private sector conglomerate company by market value – Reliance Industries headed by Mukesh Ambani is estimated to have put in bids for more than Rs 6000 Crore worth of shares , a source involved in the IPO allotment process revealed.
Other Indian corporates who have put money in Coal India’s IPO are Hero Honda and Bajaj Holdings. Cash rich companies have found Coal India’s shares to be attractively priced and a safe bet to, park their surplus cash. Hero Honda and Bajaj Holdings have each reportedly bid for more than Rs 200 crore each , the source further added.
Some analysts feel that these corporates will decide on whether to hold on to their investments only after getting allotment. If the allotted number of shares is much lower than the expected quantity, then these corporates are most likely to dump their shares for small listing gains on trading day tomorrow.
Mukesh Ambani bets big in Coal India IPO
However some with deep pockets like Reliance Industries could stay invested for a longer time. Reliance Industries has a cash and bank balance of more than Rs 13,890 Crore as per information available. The company has also made investments of more than Rs 3,130 crore in equities, Rs 4,735 crore in debt and Rs 1,190 crore in select mutual funds. Information on how many shares Reliance Industries has been alloted on it’s bids of more than Rs 6000 Crore is awaited.
A large number of foreign and domestic funds which include Janus Capital, Fidelity, Franklin Templeton, Capital International, SBI, LIC and ICICI have also bid aggressively for shares in Coal India’s IPO.
Coal India’s shares are expected to list tomorrow and investors are speculating that the stock would close above Rs 325 on it’s listing day.