COAL INDIA IPO – Bullish Or Bearish ?
The largest ever IPO opens today.The question is expected to raise Rs 15,000 crore. The issue has been priced in the range R 225-245 a share and is expected to be star attraction for private investors, until it closes on 21 October. A 5% discount will be on offer to private investors in order to attract a wider participation.
With such market volatility showing new highs, and decline’s investors are in two minds whether to go for IPO. As always, all markets analyst different views on it.
Following are some analysts view:
Suhas Harinarayanan of Religare -
one should subscribe to the Coal India IPO as the issue price is attractive and the company is best positioned to play the coal deficit. He sees CIL’s profit growth at 15%-18%.
According to AXIS Mutual fund – “The liquidity tightness during a large IPO occurs as a result of fact that many bids are financed through borrowing. This leverage shows up as a temporary expansion in the credit during the IPO period,”
Sanju Verma, Centrum Broking -
she will not subscribe to CIL IPO. She reasoned that though CIL is 40% cheaper than peers on EV/EBITDA, only 18% of it is top quality coal.
Some says yes some says no..well we are bearish on this IPO looking after how the market is going on.We think it would be better to secondary market to decide the correct valutation of this IPO.