Diwali gift for CIL investors
Nov 05, 2010
The Statesman, Kolkata
MUMBAI, 4 NOV: It was a Diwali gift for retail investors of Coal India Limited (CIL), when the company's share got listed at Rs 287.75 and zoomed to a high of Rs 344.75 before settling at Rs 342.35 on the Bombay Stock Exchange today.
Coal India (CIL), India's largest coal producing company, has raised Rs 15,200 crore through its IPO at the issue price of Rs 245 a share, at the higher end of the priceband of Rs 225-245.
“Our small investors got good listing gains. These investors were allotted shares at Rs 232.75 a share, a discount of five per cent to the final issue price of Rs 245 and now we can see how much they have gained. It will be a rewarding investment for them,” CIL chairman, Mr Partha Bhattacharyya told reporters after the listing ceremony at BSE.
“It was a historic day not only for Coal India, but for the whole Indian capital market. We are happy with the listing and expect the stock to outperform ahead,” Mr Bhattacharyya said.
CIL's investors, buyers and sellers will be able to reap gains out of the whole process of CIL's disinvestment, Mr Bhattacharyya said, adding that the company is fundamentally very sound.
On the company's future plans, Mr Bhattacharyya said that the company will go ahead with its Rs 3,800-crore capital expenditure plan this year and Rs 4,600-crore capex plan in financial year 2011-12, which will be met through internal accruals.
“We are setting up 20 washeries and have already placed the first order. We expect to place orders for another two within this fiscal and tenders for 11 more washeries have been floated,” Mr Bhattacharyya said, adding that the results of these activities will be visible in the next 2-3 years.
The company will use its cash reserves for overseas acquisitions and “we are moving in that direction,” Mr Bhattacharyya said.
Commenting on the concerns raised by the environment ministry on coal mining, Mr Bhattacharya stated that the company is keen on resolving any such issues.
“We are willing to work out a middle path on environment issues,” he said.
Meanwhile, Coal India has submitted non-binding bids for two to three coal mining projects in Australia and Indonesia, CIL's finance director, Mr AK Mr Sinha said.
Mr Sinha declined to give any financial details of the bids.
Coal India is keen to acquire stakes in overseas coal mines to bridge the gap between demand and supply in the local market, even as coal production in India continues to slow. This will also protect the firm against volatility in international prices of coal. India's coal demand may more than triple in the next two decades to two billion metric tons.
The country produces 530 million tons of coal a year and imports about 67 million tons. Coal India has proven reserves of 52.55 billion tons, of which 21.75 billion is extractable, the company said.
Meanwhile, the Bombay Stock Exchange has included Coal India in the BSE IPO Index with effect from 8 November.
4th most valued Indian firm; m-cap at Rs 2.16 lakh cr
press trust of india
NEW DELHI, 4 NOV: In a spectacular debut on the bourses, Coal India today became the country's fourth largest company in terms of valuation with a market capitalisation of Rs 2.16 lakh crore and pushed MMTC out from the club of top-10 most valued firms.
Coal India Ltd (CIL) witnessed a sparkling trading session and became the part of the elite club on the very first day of trade, causing a setback to the public sector trading firm MMTC, which finished the day with a market capitalisation of Rs 1.3 lakh crore.
“The coal sector will continue to see growing demand and investors are keen to participate. The CIL deal opens up opportunities for other entities seeking to grow their business and take it to the next level,” DSP Merrill Lynch head of global capital markets, Mr Saurabh Sonthalia said.