Coal India the largest coal mine company of the world is issuing 631,636,440 Equity Shares of Rs. 10 in the proposed IPO. Govt of India expects to earn around Rs. 14000 carores through this IPO. if the expected price divided by the no. of shares x value of share Rs. 10, the approximate price comes to Rs. 221/-. therefore the upper band will be around 220-225 and the lower band 185-195. hence the price band will be in the range of Rs. 185-225. Retail investor will get 5% discount above the cutoff price. the total retail Quota at 30% of total share on offer comes to 189490932. Crisil has given it the highest rating and their is no peers for comparison in terms of coal reserves in anywhere in the world.
At that time buyer and sellers that are sitting all over india start trading
If buyers are more..more people with higher price and hence price will increase
If sellers are more..less people wil be willing to buy than people willing to sell at lower prices..and hence price will go down.
It is just basic understand i am giving you. iT IS much more complex..but this is basic
If IPO is subscribed 50% of total. IPO will be cancelled and rejected. Your money will be refunded in full. It will not list on exchanges unless it again comes with revision...in price or issue size etc.
Grey market trades in that case will be null and void
Actually how the listing happens. I mean listing means what are the shares they have given in IPO will be released for trade in market.How the gain or loss will happen on listing. Actually before the market opens nobody, nobody can place orders. In such case how the demand or supply is decided on listing. The shares will be only in IPO allotted accounts right. Then on what basis the listing gain or the drop in price will occur at the time of listing.
2)The next dought is. say X comany has 2000 shares for IPO. Only 0.5 times the issue is subscribed. Then what will happen to 50% of shares. By what means it will be released to secondary market. Or only 50% of IPO allotted share will be playing in secondary market after listing.
Please, I am very eager to hear the answers, especially LISTING(The great dought of mine).
Please intimate me regarding Coal India IPO for Employee Quota about the following:
1) Provision of on-line biding of IPO or it has to bid in physical paper format. 2) In either case whether we can bid by ASBA or not. 3) What is the maximum amount for biding? 4) Whether retired employee can get the facility?