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Coal India IPO over subscribed by 15 times  

 Coal India IPO over  subscribed by 15 times

India's biggest initial public offering (IPO) has been billed a game-changer and it is living up to all the hype. The Coal India issue witnessed unprecedented demand, with the qualified institutional book, which includes the foreign institutional investors, mutual funds and insurance firms, seeing subscriptions of over 24 times.

The non-institutional quotas too have seen robust demand of 25 times. The retail book too has been fully subscribed taking the overall subscription for the issue to over 15 times. The government is clearly overjoyed by the blockbuster response to the issue.

Excerpts from After the Bell on CNBC-TV18 Watch the full show »

Giving a thumbs up to the issue, Finance Minister Pranab Mukherjee says, “This is a premier public sector organisation. It speaks that how much confidence the PSUs and private sector units enjoy with the prospective investors.”

Divestment secretary Sumit Bose too says the government is very happy particularly with the phenomenal response that the IPO has received from the retail segment.

Both, employees and retail investors are being given a 5% discount to the issue price. “We will continue to have an employee quota in all issues. The idea is to give employees an opportunity to partake of these shares. We hope they more employees will participate,” Bose says.

Talking about other issues in the pipeline, he says, Power Grid is the next public sector issue that will hit the markets. “Manganese Ore, SCI and Hind Copper issues will happen this year, while, IOC, SAIL and ONGC issues are scheduled for the next fiscal. This gives us the confident that we will achieve Rs 40,000 crore divestment target.”

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