OFS of Coal India Ltd.
Issue Highlights:
| Edelweiss Symbol | COAIND | Timing | 9.15 am to 3.30 pm |
| Floor Price | Rs. 358/- | Issue Size | 31,58,18,220 Equity Shares |
| Market Lot | 1 Equity Share | Retail | 6,31,63,644 Equity Shares |
| Discount For Retail Investors | 5% to Bid Price | Non Retail | 25,26,54,576 Equity Shares |
| Face Value | Rs. 10/- | Issuer has an option to sell additional shares | Issue Size: 31,58,18,220 Shares Retail Size: 6,31,63,644 Shares Non Retail Size: 25,26,54,576 Shares |
About Coal India Ltd.
Coal India (CIL) is the world's largest coal reserve holder and producer. It controls ~80% of the Indian coal market and is going to be the primary beneficiary of the structural deficit of coal in India. Moreover, it is one of the cheapest producers of coal in the world.
CIL, a Maharatna company, is one of the largest public sector companies in India in terms of turnover. Its product portfolio consists largely of thermal coal (90%) with the balance being coking coal. The company enjoys a near-monopoly position in the lucrative coal market and is more of a utility player due to assured volume off-take, pseudo regulated pricing and minimal chance of a product price cut, as prices already remain at ~20% discount to current depressed international benchmark prices.
It currently operates ~471 mines in India and is also scouting for international mines to increase global presence and assure its resources. It sells ~10% of its production based on the e-Auction route and ~3.5% beneficiated coal (2x realizations of raw coal).
Our view on Coal India Ltd.
- Government focus to ramp up coal production to 1 bn tonnes in 5 years is a big trigger for the company. CIL plans to double its production in the next 5 years.
- Government is keen to reduce imports, therefore hopes of increase in domestic coal production is higher
- The coal prices in the international market have fallen by 30% however this will not impact Coal India as Indian coal is still cheaper by 10-15% vis-à-vis international prices
- Also, given the strict measure taken by the Supreme court, the de-allocated mines are likely to be given to Coal India, impacting the company positively
| Read OFS FAQs » |
4 Easy Ways to Apply
- Login on Edelweiss.in
- Visit 'IPO' section and click on 'Order OFS'
- Select Coal India OFS
- Enter details and click on 'Submit'
- Login to Xtreme Trader
- Click on Secure link
- Click on Order IPO from drop down
- A new web page will open
- Click on Order OFS link
- List of available OFS will be displayed
- Enter details and click on 'Submit'
To know your RM, login www.edelweiss.in and then, visit 'My Page' section under 'My Edelweiss' from the navigation bar
Click here to go to My Page now!
- Call up 1800-102-3335
- Select your preferred language: Press 1 for English or 2 for Hindi
- Press 1 to confirm that you are an existing account holder
- Press 5 to apply in IPO
- Speak to the customer care executive and provide the Coal India OFS Option you wish to apply along with Quantity and Price.
About Edelweiss
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