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MOIL Limited – Review – Subscribe

November 26, 2010

I have read lot of reviews on MOIL. However, the first and foremost is the basic industry in which MOIL operates. It is Manganese and the scope of this is not as huge as Iron Ore and is very small. However, MOIL has a 45% market share in India.

MOIL is a Debt Free company with Rs 105 Cash / Share on its balance sheet. The financials of  MOIL are discussed here. I would like to make some guesstimates on the subscription taking current market conditions into consideration.

Retail Individual Investors pooled Rs 11,025 Cr and Rs 11,450 Cr for Coal India and Powergrid FPO. This time around the collection is expected to be slightly lower say at Rs 9,000 Cr due to subdued market condition as well as opportunities in the secondary market.

Cut Off Price: 375 [5% Discount at the time of allotment is applicable]
Bid Lot: 17 Shares
Maximum Retail Bid(Shares): 527
Maximum Retail Bid(Amount) :197,625
The IPO in Retail Category is expected to be subscribed by 20 times. So bid Accordingly. Expected MOIL Target Price on Listing is Rs 475.

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