The largest IPO in India’s corporate history, Coal India IPO made a solid debut in the market, booking 34% subscription on the first day. The CIL IPO attracted funds worth over Rs 5,200 crore, lifting up investor sentiments to a greater extent. CIL’s initial public offering was subscribed 1.7 times and experts think that the IPO has been oversubscribed.

Coal India IPO is expected to drum up investor support till the final day and there are bright chances that the IPO will hit its target by pulling in Rs 15,500 crore.

Interestingly, the total demand for the CIL IPO was already worth over Rs, 26,000 crore on the second-day. This clearly means that the IPO will win on positive speculation and of course its market worth. However, subscription for the institutional players is to close on Wednesday and for other investors on Thursday.

Along with institutional division of investors, corporate and retail investors participated in the listing. Institutional investors subscribed the offer 3.4 times, corporate investors 0.54 times and retail investors 0.35% times. Institutional investors believe that foreign funds played a key role to boost the institutional category as approximately $24 billion funds came into the Indian stock market, setting a new record so far this year.

Total bids for the CIL IPO crossed the subscription limit as bids for more than 107 crore shares remained at the higher of the Rs 225-245 price band declared by the CIL.

Partha Bhattacharyya, CIL Chairman, positively commented on the future potential of the CIL IPO. He said that the Coal bellwether will boost the calorific value of coal as the coal washeries will get a push. As far as employee earmarking is concerned, the conflict raised by two unions may lead to employee disappointment and there could be unsubscribed portions in the IPO.

Coal India IPO, the initial public offering put across by the world’s largest coal producer is an integrated part of the Indian government’s extended divestment strategy.