CIL fourth most valued firm; beats TCS, Infosys

Coal India (CIL) emerged as the fourth largest firm with a market capitalisation of Rs 216,240 crore ($47.33 billion), after a strong listing on the bourses. The company is second most valued firm among the coal producing company after China's, China Shenhua Energy Company which having $87.35 billion market capitalisation.

CIL started the day ranked at fifth position ahead of technology major, Infosys Technologies. It advanced to the fourth spot as the day progressed on the back heavy institutional interest at the counter. The state run company has surpassed another information technology firm, Tata Consultancy Services (TCS) to grab the number fourth position.

CIL, the biggest coal producer in the world, ended the first day of listing at Rs 342, a 40% premium over its issue price of Rs 245 per share, after it was listed at Rs 291 on the National Stock Exchange (NSE). The stock hit high of Rs 345 during the day.

CIL had reported a record combined turnover of Rs 21,970 crore on first day of its listing compared to an average total daily turnover of Rs 22,768 crore on the BSE and NSE till yesterday. As many as 671 million shares accounted more than the total free-float shares of 631.64 million shares, were changed the hands on the counter today.

The country's largest IPO had raised Rs 15,199 crore by issuing 631.6 million equity shares and issued shares at 5% discount or at Rs 232.75 per share to retail investors and eligible employees.

The issue was subscribed 15.28 times, on back of robust response from the qualified institutional bidders (QIBs) and non-institutional investors (NIIs). The reserved portion of QIBs was subscribed 24.7 times, NIIs 25.4 times and retail 2.31 times while employees' portion was subscribed just 0.1 time.

All proceeds went to the selling shareholder, Government of India, whose stake reduced to 89.99% post issue. The offer constituted 10% of the post offer paid-up equity share capital of company.

CIL is the biggest coal producer in the world with a production of 431.26 million tons in 2010. It also holds the highest coal reserves in the world, and produced 81.9% of total coal production in India.