'Subscribe' to Coal India IPO: Angel Broking

MUMBAI: Angel Broking has recommended investors to ‘Subscribe’ to the initial public offering of Coal India.

“Coal India (CIL), a Navratna company, is the world’s largest coal producer. The company accounts for nearly 82% of India’s total coal production. At the lower and upper price band, the stock will trade at 5.8x and 6.7x FY2012E EV/EBITDA, respectively. We recommend Subscribe to the issue with a DCF-based fair value of Rs 294,” the report said.

The company will enter the primary market Monday to raise Rs 15000 via the IPO by offering 63.20 crore shares of face value Rs 10 each in the price band of Rs 225-245 per share.