IPO Details - Coal India Limited

[samirbajaj]

Last time Reliance Energy sucked the money from the market and market went down to BSE 8500.... I am smelling the same with this big IPO.

[Policy_expert]

Last time Reliance Energy sucked the money from the market and market went down to BSE 8500.... I am smelling the same with this big IPO.

Reliance Energy is not completely responsible for that it's due to global meltdown.

[PolicyWala]

Positive reviews pouring in...

1. Keep Coal India in portfolio for long term: Swastika
2. CIL's profit may grow over 20% in next 3 years: Sharekhan

[BlackCaps]

Coal India (CIL) has been subscribed 0.74 times (74%) so far on the back of good response from qualified institutional investors (QIBs)

as per NSE website.

[mukesh]

Valuation and recommendation by IndiaBulls -

CIL’s status as the largest coal mining company in the world with access to the vast amount of coal reserves and highly favourable industry prospects driven by huge demand supply gap, is expected to result in strong growth prospects for the company. Further,the continuous improvement in labour productivity, use of better technology leading to a better control of costs and thus, leading to healthy overall profitability of CIL. The deregulated coal pricing regime gives CIL the power to fix the price for its produce which, along with the favourable demand supply position and cost competitiveness vis-à-vis imported coal, is likely to enable the consolidated entity to sustain its healthy profitability. We value the stock at Rs. 317 by using the DCF method (WACC: 13.50% and Terminal Growth 5%), which offers an upside of 41% over the lower end of the price band and 30% at the upper end. Going forward, we expect CIL’s consolidated revenues and PAT is likley to grow by 10% to 12% from FY11E to FY15E. Thus, we recommend investors to Subscribe to the issue.