Asia Bizz: Coal India Launches The Biggest IPO (Initial Public Offering) To Get Strong Boost In Investment Demand
Coal India, which is a state run coal company of India, has broken the roof by launching the biggest IPO (Initial Public Offering) to the public of India, which is worth $3.5 billion. One of the most important reasons to launch such an offering is that the company wants a strong boost in its investment demand.
The scenario changed within two hours of the IPO announcement, when more than 450 million orders for the offering shook the stock exchange. It is reported that the figure is 0.13 times the share and the bids are ranging between Rs.225 and Rs.245. Most large industries in India, seek to witness heavy subscriptions towards the closing of the IPO, and Coal India will be closing its subscriptions by Wednesday.
As predicted there would be a strong response from the public with their subscriptions for the IPO, and by Tuesday the situation is going to get very strong. The Indian government will be selling out some 631.6 million shares from the worlds largest coal miner, which amounts to some 10% of the stake from the company. The Coal India headquarters is based in the city of Kolkata, and has mined out some 431 million tonnes of coal in the year 2009-10.