COAL INDIA : SUBSCRIBE FOR LISTING GAINS.

Price Band - Rs.225-245, Face Value- Rs.10 , 5 % Discount to Retailers.

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......