22 October,2010 08:33 AM IST | | Bobby Anthony
New Delhi's ambitions to raise billions by selling off 10 per cent stake in the Coal India company are finally nearing achievement.
Priced in a band of Rs 225-245 per share, Coal India's IPO fetched overwhelming response from both the retail and institutional investors, witnessing an over subscription.
This response has dispelled the fears of any liquidity crunch in the market.
Arun Kejriwal, founder director of investment advisory firm Kejriwal Research & Investment Services Pvt Ltd told MiD DAY, "It appears that there is no shortage of money in the market.
The electronic media was wrongly peddling a theory that the foreigners had been selling to raise money for the Coal India IPO. The numbers have failed to substantiate this.
In fact, there has been buying."
He further pointed out that what we may be witnessing now, could be some sort of a credit driven investment boom based on the expectations of profit.
Other analysts who spoke to MiD DAY also discarded the media claims that after the allotment of shares, all the excess money due to over subscription will come back to the market.
"Investors will come in only if they think they can make money.
The government also has a vested interest in sustaining the investors' interest because they plan to divest in quite a few public sector units in future," said an analyst who requested anonymity.
