Frequent share sales coinciding with price peaks and big dividend demands even when cash is short threaten the interests of the mining giant and its investors.
Back in October 2010, I, like many other Indian equity enthusiasts, applied for Coal India Ltd shares in its landmark IPO. Expectations ran high among speculators anticipating big listing day gains and longer-term investors looking to be part of the rare profitable public sector enterprise, lording over an important sector with a near-total monopoly. Not that it matters, but I wasn’t allotted any shares.
The IPO was oversubscribed an eye-watering 279 times, with pricing at Rs 245 a share, which meant the government netted nearly Rs 15,500 crore—remember, the entire IPO was an “offer for sale”. The shares listed on …
Ujval leads our Business vertical at The Morning Context. In a corporate career spanning 14 years, he has worked across startups, consulting firms, multinational corporations and large Indian companies, including India Infoline, ICICI, KPMG, Tata Steel and Jubilant Pharma. Ujval has been a freelance writer and trainer for eight years, with bylines in Forbes India and The Economic Times.
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