COAL India IPO

THough this ipo is around 3-4 months away....

I was always looking for it to list
Other company which i want to list is NPCIL(nuclear sector)

I know after rel power again all of us will jump to buy this share as it being the world largest coal producer and we know we all are so much dependent on it

Also the IPO is set to be the biggest so far of the country of around 15000 crore..

Wanted to know whether it would be easy to get shares of the same...or Big players like LIC housing and all will get bigger chunk than us...

I had big faith in ARSS shares and applied but didnot got the shares and company traded at 100% premium in 6 months....Though this is not related to same but what u people think about it?

Usually around 30 % of the shares are reserved for retail quota,so the total amount will be 4500 Crores (if the ipo size is 15000 Crores).
LIC is an institution and will bid in their respective category.
LIC Housing is a housing finance company ,do not confuse that with LIC.

About ARSS,could you elaborate your reasons for being so bullish?

I meant with LIC was....As we know NMDC NTPC and other FPo which came were all going to go dud...So LIC the govt institute basically the insurance arm and housing took big positions for the FPO to close successfully..

And same is the reason why the govt doesnt want Sebi to control insurance arm so that whenver govt wants the money it can indirectly use the cash this way...So that was the reason government changed the 1932 law because it was sure in court 99% case will go in favour of SEBI as hardly 10% of ULIP income provides insurance and remaining 90% goes in market..(after cutting the high commission earlier)

But in long run from what i read Similar can be fate of LIC like UTI went bad when crores went down the drain

Regarding ARSS bullish..presently i am not..

But when the ipo was about to hit i was sure it will touch 1000...ipo came at around 650 i guess...And soon it crossed 1300 also..i am no longer positive as it has turn speculative share

regarding here...i am not sure at what price COAL india gets listed but i am sure even if its 1000 it will surely give 30-40% listing gains and what do u people think about it?

I know what LIC did,they followed orders from the Govt.The Govt. can't have big public issues flop cause it can be a major embarrassment and they needed the funds so they did what they always do.

SEBI couldn't have done anything about that ,they are also part of the bureaucratic landscape.

Now the SEBI/IRDA issue has a whole lot of variables and probably a new thread can be started on that .

Again about ARSS ,I meant why you were so bullish at that ipo time?(Why you thought it was going to 1000).

On Coal India...my Suggestion to you would be not just look at the price but at market capitalization first and then the share price.
The IPO is far away and more information will be available as we get closer to the offer date.
So until then we need to wait and watch.

The reason why Sebi ordered Ulip to restrict stuff was only because they being part of insurance arm were taking positions in sebi territory that too with 1000 of crore rupee of people with no sense...
And SEbi knows in future it will be too tough to digest such moves as investing so much in single share wont allow return and LIC ulips will crash(And 60-65% of insurance income comes from ULIP)

Regarding ARSS i read this view because of which i was bullish

http://economictimes.indiatimes.com...-advised-to-subscribe/articleshow/5546355.cms


Regarding COal INDIA..As i said its the biggest world biggest coal producer..And we are based on coal..
Reason no existing shares for both NPCIL and Coal india are already sitting on huge cash around 15000-20000 crore cash....And as old govt doesnt used to allow any listing in profit making units...

But now the govt wants 25% atleast in each companies ..Hence i am too positive..They already are present not like rel power which needs to create something....It will only going to get listed thats it...they already have chunks of money and already world number 1 and plus coal is the most used entity for power presently...
Hence i am too much positive......

I concur the demand for Coal is huge in India(estimated at 80 million tonnes),supply is only 55 million tonnes.
Furthermore the demand is expected to double by 2015.

So the macros are very positive.

Now for the ipo,if priced attractively will be a good asset to one's portfolio depending upon their risk apetite,investment style etc.
we need to wait to see how the issue is priced.

Almost all the big PSU's have a lot of cash eg.SAIL,NMDC,OIL,BHEL,BEL etc so i wouldn't get too excited.

when it is coming..??

18th oct'2010

With barely 4 days to go for Coal India IPO and all facts and figures out can someone(krishna or magnet) pls resume the discussion as to whether it can be considered as a gud option to subscribe.

CIL is good bet for long term. But I am worried about its IPO pricing.
Anyway , I am applying for IPO if it gives opportunity I will buy at lower level as well.