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October 18, 2010 - October 21, 2010

Coal India IPO Basis of Allotment

Coal India Limited

Government of India Undertaking

Our Company was originally incorporated as a private limited company with the name of 'Coal Mines Authority Limited', under the Companies Act, 1956, as amended ('Companies Act') on June 14,1973. Subsequently, pursuant to a shareholder's resolution dated October 15,1975 and approval of the Ministry of Law, Justice and Company Affairs (letter number RD/T/5226) dated October 21,1975, the name of our Company was changed to 'Coal India Limited' and we received a fresh certificate of incorporation consequent upon change of name dated October 21,1975 from the Registrar of Companies, West Bengal ('RoC'). Thereafter, pursuant to a resolution passed by the shareholders dated February 16, 2010 and approval of the Ministry of Coal (letter number 38038/1/96-CA-II (Vol.II)) dated July 31,2009, our Company was converted into a public limited company with effect from February 24,2010. For further details in relation to corporate history of our Company and for details of changes in the registered office of our Company, please see the section titled 'History and Certain Corporate Matters' on pages 126 and 131 respectively of the Prospectus.
Registered and Corporate Office: Coal Bhawan, 10, Netaji Subhas Road, Kolkata 700 001, West Bengal; Telephone: + 91 33 2248 8099; Facsimile: +91 33 2243 5316 Compliance Officer: Dr. H. Sarkar; Telephone: + 91 33 2248 5123; Facsimile: +91 33 2231 5060; Email: complianceofficer@coalindia.in; Website: www.coalindia.in

PROMOTER OF THE COMPANY: THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF COAL, GOVERNMENT OF INDIA

BASIS OF ALLOTMENT

PUBLIC OFFER OF 631,636,440 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH ('EQUITY SHARES') OF COAL INDIA LIMITED ('COAL INDIA' OR 'OUR COMPANY') THROUGH AN OFFER FOR SALE BY THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF COAL, GOVERNMENT OF INDIA (THE 'SELLING SHAREHOLDER') FOR CASH AT A PRICE OF RS. 245* PER EQUITY SHARE AGGREGATING UP TO RS. 151,994.40* MILLION (THE 'OFFER'). THE OFFER COMPRISES A NET OFFER TO PUBLIC OF 568,472,796 EQUITY SHARES (THE 'NET OFFER') AND A RESERVATION OF 63,163,644 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE 'EMPLOYEE RESERVATION PORTION'). THE OFFER SHALL CONSTITUTE 10.00% OF THE POST OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY AND THE NET OFFER SHALL CONSTITUTE 9.00% OF THE POST OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.
THE FACE VALUE PER EQUITY SHARE IS RS.10/- EACH AND THE OFFER PRICE IS RS. 245* PER EQUITY SHARE. THE OFFER PRICE IS 24.5 TIMES OF THE FACE VALUE.
*AFTER ADJUSTING FOR 5% DISCOUNT TO THE OFFER PRICE OFFERED TO THE RETAIL INDIVIDUAL BIDDERS AND ELIGIBLE EMPLOYEES (RETAIL AND EMPLOYEE DISCOUNT) AS DECIDED BY THE SELLING SHAREHOLDER AND OUR COMPANY IN CONSULTATION WITH THE BRLMS.
BID/OFFER OPENED ON OCTOBER 18, 2010 • CLOSED ON OCTOBER 20, 2010 FOR QIB BIDDERS
• CLOSED ON OCTOBER 21, 2010 FOR RETAIL AND NON-INSTITUTIONAL BIDDERS (INCLUDING ELIGIBLE EMPLOYEES BIDDING UNDER THE EMPLOYEE RESERVATION PORTION)

This Offer was being made through the Book Building Process wherein at least 50% of the Net Offer shall be Allotted on a proportionate basis to Qualified Institutional Buyers ('QIBs' and such portion the 'QIB Portion'). Such number of Equity Shares representing 5% of the QIB Portion was available for allocation on a proportionate basis to Mutual Funds only. The remainder of the QIB Portion was available for allocation on a proportionate basis to QIBs, subject to valid Bids being received from them at or above the Offer Price. Further, not less than 15% of the Net Offer was available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received from them at or above the Offer Price. Further, 63,163,644 Equity Shares was available for allocation on a proportionate basis to the Eligible Employees, subject to valid Bids being received from them at or above the Offer Price.
The Offer received 1,664,977 applications for 9,600,622,625 equity shares resulting in 15.1996 times subscription (Before technical rejections and cheque returns). Out of these there were 313,175 no. of applications for 6,840,061,150 no.of Equity Shares made under the ASBA process. The details of the applications received in the Offer from Qualified Institutional Buyers. Non-Institutional and Retail Investor and Eligible Employee categories are as under: (Before technical rejections and cheque returns).

Category No. of Applications Received No. of Equity Shares Subscription
Qualified Institutional Buyers 784 6,996,669,075 24.6157
Non Institutional Investors 9,440 2,143,067,200 25.1325
Retail Individual Investors 1,626,905 454,048,025 2.2820
Eligible Employee 27,848 6,838,325 0.1083

Final Demand
A sample of the final demand at different bid prices is as under:

Bid Price No.of
Shares
% to
total
Cumulative
Total
Cumulative
% to total
225 802,384,325 7.1299 802,384,325 7.1299
226 38,075 0.0003 802,422,400 7.1303
227 23,225 0.0002 802,445,625 7.1305
228 17,150 0.0002 802,462,775 7.1306
229 9,800 0.0001 802,472,575 7.1307
230 1,597,075 0.0142 804,069,650 7.1449
231 11,700 0.0001 804,081,350 7.1450
232 33,700 0.0003 804,115,050 7.1453
233 159,600 0.0014 804,274,650 7.1467
234 36,775 0.0003 804,311,425 7.1471
235 798,347,700 7.0941 1,602,659,125 14.2411
236 14,525 0.0001 1,602,673,650 14.2413
237 15,150 0.0001 1,602,688,800 14.2414
238 33,075 0.0003 1,602,721,875 14.2417
239 11,725 0.0001 1,602,733,600 14.2418
240 21,854,800 0.1942 1,624,588,400 14.4360
241 30,675 0.0003 1,624,619,075 14.4363
242 464,950 0.0041 1,625,084,025 14.4404
243 719,925 0.0064 1,625,803,950 14.4468
244 133,650 0.0012 1,625,937,600 14.4480
245 9,229,564,750 82.0134 10,855,502,350 96.4613
CUTOFF 398,231,775 3.5387 11,253,734,125 100.0000
TOTAL 11,253,734,125 100.0000

The Basis of Allotment was finalized in consultation with Bombay Stock Exchange Limited ('BSE') on 29 October, 2010.

A. Allocation to Eligible Employees (After Technical Rejections) Including ASBA Applications
The Basis of Allotment to the Eligible Employees, who have bid at the Cut-Off price or at and above the Offer Price of Rs.245/- per Equity Share, was finalized in consultation with the BSE. The category was subscribed to the extent of 0.096203 times. Tne total number of shares allotted in this category is 6,076,550 Equity Shares to 24,687 applicants. Full and firm allotment was made to all valid applications received in this category.

B. Allocation to Retail Investors (After Technical Rejections) Including ASBA Applications
The Basis of Allotment to the Retail Investors, who have bid at cut-off or at and above the Offer Price of Rs.245/- per Equity Share, was finalized in consultation with the BSE. The category was subscribed 2.007793 times. The total number of shares allotted in this category is 218,945,962 Equity Shares including spillover from Eligible Employee Reservation Category to the extent of 19,980,483 Equity Shares to 1,517,069 applicants. The category-wise details of the Basis of Allotment are as under:

Category No. of Applns. % to total Total No.of Equity Shares applied % to total No. of Shares allocated Ratio Total No. of Equity Shares allotted
25 88669 5.68 2,216,725 0.50 25 1:2 1,108,375
50 111570 7.15 5,578,500 1.27 25 1:1 2,789,250
75 36359 2.33 2,726,925 0.62 37 1:1 1,345,283
100 164151 10.51 16,415,100 3.73 50 1:1 8,207,550
125 25387 1.63 3,173,375 0.72 62 1:1 1,573,994
150 26814 1.72 4,022,100 0.91 75 1:1 2,011,050
175 9641 0.62 1,687,175 0.38 87 1:1 838,767
200 139039 8.9 27,807,800 6.33 100 1:1 13,903,900
225 9793 0.63 2,203,425 0.50 112 1:1 1,096,816
250 18130 1.16 4,532,500 1.03 125 1:1 2,266,250
275 4171 0.27 1,147,025 0.26 137 1:1 571,427
300 22224 1.42 6,667,200 1.52 149 1:1 3,311,376
325 4480 0.29 1,456.000 0.33 162 1:1 725,760
350 5854 0.37 2,048.900 0.47 174 1:1 1,018,596
375 5321 0.34 1,995,375 0.45 187 1:1 995,027
400 889800 56.99 355,920.000 80.96 199 1:1 177,070,200
400 1 12:95 112,341

C. Allocation to Non Institutional Investors (After Technical Rejections) Including ASBA Applications
The Basis of Allotment to the Non Institutional Investors, who have bid at the Offer Price of Rs.245/- per Equity Share, was finalized in consultation with the BSE. The category was subscribed 22.670972 times. The total number of shares allotted in this category is 93,833,983 Equity Shares including spillover from Eligible Employee Category to the extent of 8,563,064 Equity Shares to 8,717 applicants. A sample of the category-wise details of the Basis of Allotment are as under:

Category No. of Applns. % to total Total No.of Shares applied % to total No. of Shares allocated Ratio Total No. of Shares allotted
425 305 3.44 129,625 0.01 25 3:4 5,725
450 68 0.77 30,600 0.00 25 4:5 1,350
475 19 0.21 9025 0.00 25 16:19 400
500 506 5.71 253000 0.01 25 9:10 11350
975 6 0.07 5,850 0.00 43 1:1 258
1000 584 6.59 584,000 0.03 44 1:1 25,696
3000 64 0.72 192,000 0.01 132 1:1 8,448
17000 13 0.15 221,000 0.01 750 1:1 9,750
29800 1 0.01 29,800 0.00 1314 1:1 1,314
6734675 1 0.01 6,734,675 0.32 297062 1:1 297,062
20408150 2 0.02 40,816,300 1.92 900189 1:1 1,800,378
40500000 2 0.02 81,000,000 3.81 1786426 1:1 3,572,852
45800000 1 0.01 45,800,000 2.15 2020205 1:1 2,020,205
79000000 1 0.01 79,000,000 3.71 3484625 1:1 3,484,625
80000000 1 0.01 80,000,000 3.76 3528732 1:1 3,528,732

D. Allocation to QIBs Including ASBA Applications
Allocation to QIBs has been done on a proportionate basis in consultation with the BSE. As per SEBI regulations Mutual Funds were initially allocated 5% of the quantum of shares available (15,638,997 Shares) including spillover from Eligible Employee Reservation Category to the extent of 1,427,177 Equity Shares and other QIBs were allocated the remaining available equity shares (297,140,948 Equity Shares) including spillover from the Eligible Employee Reservation Category to the extent of 27,116,370 Equity Shares.

Category Fls/Banks MFs Flls VCs Insurance Companies Total
No of Shares 40,547,512 26,695,952 209,455,008 77,503 36,003,970 312,779,945

The Committee of Directors for IPO of the company at Its Meeting held at Kolkata, India on 30 October 2010 has approved the Basis of Allotment of equity shares to various successful applicants and Allotted the Equity Shares to various successful applicants.
The Refund Orders will be dispatched to the address of the investors as registered with the depositories on or before 2 November, 2010. Further the instructions to the SCSBs have been dispatched on 30 October 2010. In case the same is not received within ten days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The Equity Shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned.
The Company is taking steps to get the equity shares admitted for trading on Bombay Stock Exchange Limited and National Stock Exchange of India Limited on 4 November 2010.
Note: All capitalized terms used and not defined herein shall have the respective meaning assigned to them in the Prospectus dated 26, October, 2010 filed with the Registrar of Companies, West Bengal ('Prospectus')

INVESTORS PLEASE NOTE
This details of the allocation made are available on the website of Registrar to the Offer, Link Intime India Private Limited at www.linktime.co.in, http://coalindia.linkintime.co.in

All future correspondence in this regard may kindly be addressed to the Registrars to the Offer quoting full name of the First/ Sole applicant, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the address given below:
Link Intime India Private Limited, C-13, Pannalal Silk Millls Compound, L.B.S. Marg, Bhandup (West), Mumbai 400 078, Maharashtra Telephone: +91 22 25960320, Facsimile: +91 22 25960329,
E-mail id: cil.ipo@linkintime.co.in, Website: www.linkintime.co.in, http://coalindia.linkintime.co.in

Place: Kolkata
Date: 30 October 2010
For Coal India Limited
on behalf of Board of Directors
Sd/-
Chairman & Managing Director

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF COAL INDIA LIMITED

Coal India Limited

is proposing to make, subject to market conditions and other considerations, a public offer of equity shares through an offer for sale by the President of India, acting through the Ministry of Coal, Government of India and has filed a Prospectus with the Securities & Exchange Board of India ('SEBI') and the Registrar of Companies, West Bengal. The Prospectus is available on the SEBI website at www.sebi.gov.in as well as on the websites of the book running lead managers at http://www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm, www.db.com/lndia, www.dspml.com, www.enam.com, www.kmcc.co.in and www.morganstanley.com/indiaofferdocuments.

Coal India IPO Basis of Allotment FAQs

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Check the basis of allotment document above to know about how the shares are allocated in Coal India IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).