Nirmal Bang recommends 'Subscribe' to Coal India IPO
Nirmal Bang has recommended investors to ‘Subscribe’ to Coal India IPO. The company’s valuations as compared to global peers look attractive, the brokerage says.
By ET Bureau |
MUMBAI: Nirmal Bang has recommended investors to ‘Subscribe’ to Coal India IPO. The company’s valuations as compared to global peers look attractive, the brokerage says.
“Coal India is the largest coal company, both in terms of reserve and production. Given the growing coal demand, short supply of coal and CIL being the paramount player in India in its business, the outlook looks positive.
The prevailing global average P/E hovers around 20.0x and EV/EBITDA around 12.0x. CIL is offered at 15.7x P/E multiple and 6.3x EV/EBITDA multiple of FY10 earnings which looks attractive. Hence we recommend to SUBSRIBE this IPO,” the report said.
Around 63.16 crore equity shares will be disinvested in CIL by the Government of India. CIL will not receive any proceeds from the offer and all proceeds shall go to the selling shareholder.
“Coal India is the largest coal company, both in terms of reserve and production. Given the growing coal demand, short supply of coal and CIL being the paramount player in India in its business, the outlook looks positive.
The prevailing global average P/E hovers around 20.0x and EV/EBITDA around 12.0x. CIL is offered at 15.7x P/E multiple and 6.3x EV/EBITDA multiple of FY10 earnings which looks attractive. Hence we recommend to SUBSRIBE this IPO,” the report said.
Around 63.16 crore equity shares will be disinvested in CIL by the Government of India. CIL will not receive any proceeds from the offer and all proceeds shall go to the selling shareholder.
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