Today investors especially the retail investors who got subscription at 5% discount to the issue price of 245 must be very happy today as COAL India lists at 300 and touched an intraday high of 340. At 340 retail investors are earning close to Rs. 21,500 /- on each application. This is going to be an eventful day in the history of Indian stock market. The retail investors who had the leftout feeling in the recent rally of SENSEX from 8000 to 20000 have finally been able to make some money. This is crucial, for our markets because it is the retail investors who will bail out people who have been betting on midcap and small cap stocks, based on valuations, since very long but have hardly reaped any benefit. Because of FII money, the large cap stocks have been independently rising without the participation of mid and small cap and hence a huge valuation gap has been created between them.
After this episode of COAL India IPO, retail investors would now have some confidence of investing in the market again.