Coal India IPO subscribed 1.71 times on second day

The inital public offer (IPO) of Coal India Ltd, the country’s largest, was subscribed 1.71 times at the close of its second day today. The issue received bids for 1,080.16 million shares as against 631.63 million equity shares on offer.

Bids for over 48.44 million shares were received at the cut-off price. The price band is between Rs 225 and Rs 245 and the cut-off price means these investors are willing to pay whatever final price the company fixes after the subscription is complete.

The over-subscription was achieved on the back of good response from qualified institutional buyers. They have bid for 869.33 million shares so far, as against 284.23 million shares offered to them. The subscription period for this category closes tomorrow and it has been subscribed 3.06 times over. For other categories of investors, the last date is Thursday.

At 4 pm on the National Stock Exchange, the retail portion of the issue was subscribed 0.35 times, while the high net worth individual (HNI) category was subscribed 0.13 times. Out of 198.96 million shares reserved for them, retail investors have bid for 69.25 million. The HNIs have bid for 46.24 million shares as against 85.27 million shares offered to them.

At the upper end of the price band, the government aims to get Rs 15,400 crore through IPO. The company will not receive any proceeds and the money will go to the selling shareholder, the government, whose stake after the issue will fall to 89.99 per cent.