Errors in Coal India prospectus gets investors exit option
22 October 2010
Coal India, whose $3.5-billion IPO was oversubscribed more than 15 times has been asked by the capital markets regulator to offer investors an exit option until 25 October following the detection of certain errors in its prospectus, according to Partha Bhattacharyya, the state-run company's chairman.
There were two places, where Bhattacharyya said figures were "interchanged" which he termed "typographical errors".
According to finance director A K Sinha, accretion in the stock and other income got interchanged in the company's standalone financial statement printed in the prospectus. He added it had no impact on the company's total income and profit figures.
Responding to a question whether this would have any impact on the subscriptions, Bhattacharyya said it was a trivial kind of a thing and he did not seen any impact.
The company's IPO attracted bids grossing at least Rs2.3 lakh crore, or $54 billion in cash - enough to build 25 airports similar to the sparkling New Delhi.
Analysts said this indicated investors were keen to buy if shares were reasonably priced.
Janus Capital, Fidelity, Franklin Templeton and Capital International led overseas investors' bids while domestic bids were topped by State Bank of India , ICICI Bank and Life Insurance Corporation which raised hopes of strong demand for forthcoming issues, according to analysts.
A number of top state-run companies across the world have recently raised massive amounts through share sales including