Grey Market On Premium In Coal India IPO Issue

08 Oct

Posted by Shyam as IPO Watch

Even though Coal India Ltd has officially not announced the issue date, grey market is quite excited about Coal India IPO Price and has placed Rs 10-12 premium on its prices which haven’t been fixed yet but is anticipated to be between Rs 225 and Rs 270.

Reliance Power, the biggest to gain in 2008 was the one whose applications were sold at Rs 7000 by the stockholders. And now it’s Coal India Ltd, the applications of whose are being sold at Rs 2000-4000.

Presently in the retail trade, the stockbrokers of Gujrat and Mumbai are competing tough with each other. The reason behind this is that it’s expected to have profit of about Rs 4,000 by each applicant from a broker on shares worth Rs 2 lakh. Even if the shares of Coal India are priced at Rs 270, these will be issued to the retail applicants at Rs 225 only as they will be given 5% discount on the listing price.

Profit to be gained by the retail applicants on an investment of about Rs 2 lakh (200 shares) is expected to be Rs 25 per share. Not only this, the profit is also expected to increase as there may be a hike in the listing price of the shares.

The expectation of grey market operators from Coal India IPO is quite high as according to them it may give a turnover of Rs 300 crore (Rs 50 crore more than Reliance Power).

Coal India IPO may hit the market during Diwali on 4^th of November with reservation of about 30-35% shares for retail market. The company wants new investors as well and so is expected not to price its shares as high as Reliance Powers. So overall things look great for Coal India IPO. For more information on Coal India IPO price, Coal India IPO date, Coal India IPO listing price, Coal India IPO allotment status please keep checking the place. Check Coal India IPO allotment status here. Check Coal India IPO listing price here.