Today Coal India Limited (CIL), the biggest coal producer of the world has started taking subscriptions for its IPO. CIL has plans to raise an amount of fifteen thousand crores of rupees from the issue. This figure is the highest amount in the nation’s history as Reliance Power had earlier made this record and raised eleven thousand crores of rupees.

As a part of the government programme this move has been taken by the CIL. The total money raised will go to the government which will have eighty eight decmal nine nine percent in the firm after the dilution.

The qualified institutional buyers can buy this issue till 20 October while non qualified institutional buyers can buy the shares till 21 October.

A discount of five percent over the issue price can be enjoyed by the retail investors and employees of the company.

Most of the experts as well as brokerage firms have asked investors to invest in the IPO taking the growth of the company in account which is superb and they feel that the firm will do consistently well in times to come. Coal is of great demand especially from the power sector CIL offers lowest price and projects an attractive valuation.

Majority people of the market admitted that the price band fixed by the firm is well below their expectations. The range of the price band is between two hundred and twenty five rupees and two hundred and forty five rupees per share. The firm will float sixty three crores of shares through this IPO.

Managing director of Prime Database, Prithvi Haleda stated that they are happy with the valuation projected by the CIL and the added advantage is that the investors from institutions will find the price band quite attractive.

He added further saying if the institutional demand is high then the five percent discount will be good but to get more investors ten per cent would have been better.