Nov. 4: Diwali rang in a day early for retail investors who had applied to the Coal India IPO. When the CIL chairman and managing director, Mr Partha Bhattacharyya, rang the opening bell at the exchange, he rang in a profit of Rs 21,800 each for the retail investors.
An investor who bid for the maximum possible number of 400 shares got 199 each. The price for retail was at a 5 per cent discount to the issue price of Rs 245. Therefore, if you haven’t sold those shares so far, you have a profit of a little over Rs 100 on each of those shares.
Coal India was a great PSU stock giving a 40 per cent return on day one, said Mr Kishor Ostwal of CNI Research. He feels “investors should exit if not fully, then to the extent of 60 per cent to make you cost free. Fundamentals suggest that Coal India is a good bet at Rs 270.”
The coal major also broke several records from the day it was announced because of its sheer size and magnitude.