Tuesday, October 19, 2010
COAL INDIA : SUBSCRIBE FOR LISTING GAINS.
Issue opens on - 18th October 2010, Monday
Issue closes on - 21st October 2010, Thursday
Listing on – 4th November 2010, Thursday
QIB Book - 315818220 shares.
Retail Book - 568472796 shares.
Employee Reservation - 63163644 shares
Total No. of Shares offered - 631636440 shares or 10 %
Equity Shares outstanding after the Issue - 6316364400 Sh
Equity Shares outstanding prior Issue -6316364400 Sh
Total Size of the Issue - Rs. 14211.81 Cr's. - Rs. 15475.09 Cr's.
IPO GRADING – 5/5 by CRISIL , 5/5 by ICRA.
FAIR VALUE - Rs.265- Rs. 315
CONSOLIDATED RESULTS AS ON – 31st March 2010
TOTAL INCOME - Rs. 52592.292 cr
NET PROFIT – Rs. 9833.699 cr
Share Capital – Rs. 6316.364 cr
Reserves & Surplus – Rs. 19533.022 cr
Dividend – 35 % or Rs. 3.50 per share.
Earning Per Share – Rs. 15.57/sh.
Book Value – Rs. 40.92/sh.
COAL INDIA – India’s largest coal producing company. In FY 09 it contributed 81.9% of total India’s coal production. Largest producer of coal based on raw coal production in the world. Coal Reserve as on 1st April 2010 – 6421.8 cr. It operates 471 mines across 8 states in India. Also exploring opportunities in Australia, Indonesia, South Africa & USA.Raw coal prices lower than landed cost of imported coal in India. Coal India will help GOVT to raise 37.8 % of its disinvestment target.
According to the red herring prospectus of the company, on a consolidated basis, it had registered the three months profit ended June 30 2010, Coal India's total income was about Rs 13,110 crore, while net profit for the period stood at Rs 2,521.78 crore, Coal India had a cash and bank balance of Rs 38,046.34 crore and debt of Rs 1,779.45 crore. Coal India has set aside $1.2 billion (Rs 5,300 crore) in this financial year for foreign acquisitions,
CIL is 40% cheaper than it peers on EV/EBITDA, only 18% of its coal is of top quality. On a price to earnings basis, it certainly does not look overpriced. It is in line at 15 times with what a Peabody Energy or Bhumi Resources is trading at. If you were to look at it from an EV/EBITDA prospective, then it is certainly more than 30% or 40% cheaper vis-à-vis some of its global peers trading at about 6 to 6.5 times whereas the global average to EV/EBITDA basis stands at a 12-13 times. So clearly valuations seem to be on its side. According to me the fair value of CIL comes to Rs. 1,67,383.65 cr - Rs. 1,98,965.47 cr or Rs. 265 - Rs.315
SUBSCRIBE FOR LONG TERM & IF FOR TRADING PROSPECTIVE GO FOR IT ON LISTING GAINS......