State-run Coal India’s initial public offer (IPO) to raise as much as $3.5 billion was covered more than 10 times on the third day of the issue launch, exchange data showed, as large investors crowded in on the final day for institutional orders.

The IPO, the largest in Indian corporate history, received bids for about 6.5 billion shares, or 10.3 times the 631.6 million shares on offer, data showed at 1030 GMT.

The order book was set to close on Wednesday for institutions and Thursday for retail investors.

If priced at the top of its Rs 225-245 range, Coal India would have a market value of $35 billion, ranking it seventh among India’s listed firms.

It would surpass Reliance Power’s $3 billion listing in 2008 as India’s largest new issue.

The stock is set to begin trading on November 4.

The offer was expected to draw billions of dollars from global investors who have been pouring money into emerging markets such as India in recent months in search of higher returns.

A Reuters poll of fund managers last week had estimated the offer price at around Rs 250 a share, indicating strong interest for the miner’s dominant market position in an economy growing at 8.5 per cent and attractive valuations.

source: Business-Standard

Tags: coal india subscription, listing date of coal india, nse bse coal india

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