Earning My Money

The coal India $3.5 billion IPO in Indian Market is going to open on Monday i.e October 18th 2010. The Experts prediction indicates that the market is happy with the price band of Rs 225-245. Retail investors have been given incentive of 5%.
Is this IPO attractive or not? The pro and cons of investing in this share is revealing herewith:
The CLSA has estimated the worth of its share is more than Rs 300 but on the other hand some experts feel that the pricing of this share at Rs 245 seems to be expensive. It is expensive or fairly right priced on this question kindly recall coal India profit in the year 2008-09 was 2078 rupees crores and in the year 2009-10 it was Rs. 8312 crore. On the basis of these profit reports we can easily say that these sorts of investment opportunities rarely knock the door.
Many people must recall the January 2008 reliance power IPO while investing in coal India IPO and with the IPO of Reliance Power the stocks market turned bearish for a long time and many people are still feeling that the history will repeat once again with this IPO too. But one more angel to think that the market is right now in upward trend and with the opening of this share it will be bullish for a long time.
jitendra kumar singh
pgdm semester 1
2010-2012.