Diwali is synonymous with crackers and a blast. If the Indian Cricket team is having a blast at Motera, Coal India is setting the markets on fire. The stock closed at Rs 342 both on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The closing prise was way beyond the expectations of traders and analysts who had predicted a 15-20 per cent listing day gain for the share that was issued for Rs 245.
The stock got listed at Rs 291 on the NSE and at Rs 287 on the BSE and reached an intra day high of Rs 345 before settling at Rs 345 on close of trade.
Anil Chopra, chief executive officer, Bajaj Capital said, “It is a pleasant surprise that the stock jumped 40 per cent on debut. The share was fairly priced and therefore it received fabulous response from all kind of investors including the foreign funds.” However, Chopra was of the opinion that such levels would not be sustainable for long and expected profit-booking from retail investors. “We see the price falling down to Rs 280-300,” he added.
A total of 48 crore shares of the company were traded on the NSE, while 19 crore shares were traded on the BSE on Thursday.
Shashi Krishnan, chief investment officer, Bajaj Allianz Life Insurance, said the company has done well on the listing day and it’s a good long-term investment for retail investor. “The share is reasonably valued and the company has a lot of potential to grow in future. It virtually has a monopoly in India and there are enough scope for improving margins of the company.” Krishnan added.