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November 4, 2010

Coal India Listing simply stuns everybody…Issued at Rs 245, opens at Rs 294, races away beyond Rs 320 and closes at Rs 342 near high of Rs 344 !…fourth largest listed company by market cap !

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Coal India……What a stunning Listing !….surely beyond anybody’s expectations

Issued at Rs 245…opens at Rs 294…races away beyond Rs 320 before one could catch some breath….stays above this all day…touches a high of Rs 344 and closes near it at Rs 342 !

Coal India is now the fourth largest Listed Company by Market capitalisation….At Rs 342,it’s Market Cap is Rs 216241 crs…that’s just under US $ 49 billion….very close to third ranked State Bank of India….maybe a third ranking tomorrow !…….yet some distance away from ONGC and the leader Reliance Industries

…and tomorrow at 6.15 pm we have Muhurat Trading !…so we should see a new High for Coal India + a new high for the Sensex too !….Sensex surged to 20894..up by 428 points….one more similar surge tomorrow and we shall see a new Sensex high past 21250 ! 

Many retail allotees have got a great sale price even today as the share price simply whizzed past Rs 320 in minutes this morning…those who yet have not sold should really consider cashing in for now….that is my view….for the Long Term certainly COAL IS COOL !….but as Arzan’s response to my earlier today blog on Coal India observes ” Only a Monopoly can allow an inefficient company to be so highly valued and highly sought out ! ” ….but this is real money being made in Coal India…real, only if you cash it…and it’s a great price to do so now !

Cheers ! 

COAL IS COOL….COAL IS COOL….sing it to the rhythm of SINGH IS KING !

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Coal India lists this morning….Expected to show Rs 300 atleast for awhile…surely Rs 275 +…Issue Price was Rs 245 with retail segment getting a 5% discount to make it Rs 232.75 for them…and this segment was oversubscribed 2.28 times and got the benefit of rollover from the undersubscribed Employees Segment….Those who applied for max 400 shares have been allotted 199 shares and should easily notch up gains of over Rs 10000 today on listing lighting up their Diwali

Should one buy,hold or sell Coal India on Listing today ?

Remember that other segments were oversubscribed 25 times…770 Institutions and 9500 Non Institutional Investors…they have got poor allotments…@ 4000 Shares for every 100000 applied…..surely they may eye Coal India on Listing….if the price is attractive enough…so this caps any downside in the short term

In the Long Term COAL IS COOL…COAL IS COOL…..sing in the beat of SINGH IS KING !

Simple Advice for now…CASH IS KING TOO !….Retail Investors should exit Full or Partial if they get Rs 285 + on listing today or in the next few days……Some may prefer the strategy of letting go few shares at a time to try and average better if price rises…..my sense is that the max allotment of 199 shares is relatively a small lot,so as our wise Sages say,if you are letting go,let go all together……remember the message in the story when a troubled disciple of a Guru was asked to empty the bag of pebbles in a nearby river…he took hours to return as he was counting each pebble before flinging it into the river…..Why? None was to remain with him !.

Institutional and High Networth Investors are reckoned to be smart…so they can decide for themselves to Buy further,hold on to their poor allotment or exit it

Oh! and do say thanks to our Government…they desperately need some warm greetings this Diwali

Cheers !   

Post script  we are 15 min away from listing and I’m told grey market premium has shot up to Rs 45…so we should see a strong Rs 290 + opening and market guys expect  Rs 310 to be recorded sometime during the day 

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