Finance Minister Pranab Mukherjee today said huge demand for Coal India's (CIL) initial share sale offer shows investor confidence in premier Indian companies.
"This (Coal India) is a premier organisation. It speaks how much confidence they (companies) enjoy... With prospective investors," Mukherjee told reporters.
The Rs 15,000-crore IPO by state-run Coal India has received an overwhelming response from all kind of investors, retail as well as institutional, and was oversubscribed 15.17 times by 1700 hrs, as per the NSE data.
Coal Minister Sriprakash Jaiswal also said that the kind of response CIL has received shows confidence of investors in the India growth story.
"Huge participation from foreign institutional investors as well as retail buyers shows high confidence in the world's largest coal producer (CIL)," Jaiswal told PTI.
Jaiswal further said that the mega CIL IPO will set the benchmark for forthcoming public issue of other PSUs.
The public offerings of three bluechip navratna companies -- SAIL, IndianOil and ONGC -- is expected to hit Dalal Street in the first quarter of next year.
"During the first quarter (January-March) of next calender year, we will see the public offerings of SAIL, IOC and ONGC," Disinvestment Secretary Sumit Bose had said earlier this week.
Bose further said he is "very happy" with the Coal India IPO response, particularly great enthusiasm shown by retail investors. "We are happy with the response shown by investors of all segments, particularly retail for the Coal India IPO."
The state-owned CIL's IPO is the country's biggest share sale so far with the government looking at garnering about Rs 15,400 crore by selling 10 per cent stake in the world's largest coal producer.
The IPO, priced in a band of Rs 225-245 per share, closes today for retail and non-institutional buyers.
