Coal India IPO Subscription reaches 34 percent on Day 1

Coal India Ltd's Rs 15,000- crore mega initial public offer, the country's largest public issue so far, got demands for 34 % of shares on offer on the first day. The issue received maximum demands from institutional buyers, which include FIIs, insurance firms and mutual funds with 63% subscription.

In retail portion it was subscribed 10 %, the data showed. In total, the issue attracted bids for 21.3 crore shares against 63.1 crore equities on offer. The demand received on the first day is valued at Rs 5,230.41 crore at the upper end of price band. The issue is priced in the range of Rs 225 to Rs 245 per share.

The government is divesting 10 % stake in CIL, the world's largest coal producer, through this issue.The offer closes on October 21.

Primary market analysts believe participation from retail investors will pick up in the last two days, as they usually follow the trend of institutional investors.

" Most of the money, for investment in such big issue, is borrowed by banks and in such a scenario big buyers prefer to make bid on second or third day to avoid interest burden," SMC Global Securities Strategist Jagannadham Thunuguntla said. The navratna company is expected to list on the domestic bourses by November 4.