Coal India (CIL) is going into the capital market on Oct. 18, 2010 at a cost band of Rs 225-Rs.245 throughout a 100% book building procedure Broking company Sharekhan stated that early initial offering (IPO) of CIL, at the propose price band of Rs 225-245 the stock is obtainable at 14.5-16x FY2010 earnings which seem striking for a company that has  muscular earnings growth viewpoint,  elevated return ratios (return on equity [RoE] and earnings on capital employed [RoCE] in excess of 30%) and a high level of cash on the books.

The firm expressed further that CIL is known to be a quality public sector unit that is in a good way placed to exploit the mounting demand-supply gap for coal in India owing to its enormous reserves, tough balance sheet and proposal in use to perk up the steadiness of output (through investment in coal washeries).

On a rough-cut basis, they are expecting the corporation to prove an earnings growth of over 20% in the next coming 3 years time.

To hard cash in on the severe scarcity of coal, the CIL is amongst the biggest companies worldwide establish on the coal reserves of 64,786 million ton as on Apr. 1, 2010 (consist of proved reserves of 52,546 million ton, indicated reserves of 10,298MT and inferred reserves of 1,942 million ton).