POSTED BY TheZionView ON October 20, 2010 10:44 pm COMMENTS (2)

How does a IPO Work.


For example now the Coal India IPO is out and is said to be subscribed 1.7 times.

I have subscribed for 1 slot ie 25 share in early morning of tuesday at Rs 235.What are the chances of me getting the shares,,is it first come first serve or if many have subscribed for 245 then they will get it?

2 replies on this article “IPO”

  1. Rajendran says:


    In the current scenario, it all depends on the price at which govt decide to give this stock looking at the history and current subscription level. GOVT would decide the price to be 245, I would love to be wrong here. Govt please give this stock for less as I am still stuck with the NHPC issue.

    In case if the price is decided to be above 235, you have no chance of allotment. In case if the price is decided to be 235 or less than that then the probabiliy of you getting alloment would depend on the retail subscription level. If the subscritption is less than 1 time then u will get firm allotment if not then it will go into probability ….

    After the final subscription, I can provide some kind of sure probabily. At this point everything is a wild guess….

    Even if you apply at 245 after 5% discount your effect price would be 232.75 only.

  2. Hemant B says:

    Coal India (Retail subscription) is still .69% & today is last day – you can expect it reaching 1.25 of 1.5 times. So retail can except allotment of 60-80% of there applied shares.

    Retail should mention “Cut off” rather than quoting any price but as you have quoted 235 their is bleak chance that you get allotment. You can still revise your bid to cutoff talk to your agent.

    IPO is not the best way to Invest – it stands for “Its Probably Overpriced”

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