Coal India, a navratna company has come out with its IPO that has opened up in the Indian market as of yesterday.
Coal India is the largest producer of coal in the world and the government of India is divesting 10% of the stake in the company.
There are multiple reasons why i think we should apply for the issue.
1. there is a 5% discount for retail investors over the fixed price-- so even if you sell at market price and assuming the scrip lists at premium, you make money.
2. The company will be in the top 5-10 companies in India- hence it will definately be part of the nifty and part of the Sensex.
3. There is a shortage of coal in the world, and therefore this is a key resource -- demand outstips supply.
4. There is a volume as well potential price play to improve margins-- especially on the export demand ( for within India, i dont think that the govt will increase prices).
So all in all- this is going to be a premier company to bet on . And on a long term basis- natural resources are going to be scarce.
So do go in for the IPO. Its worth it.
Happy Investing
( dont forget to subscribe using the links on the right)
No comments:
Post a Comment