About Public Issues

Corporates may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. This Initial Public Offering can be made through the fixed price method, book building method or a combination of both. There are two types of Public Issues: ISSUE TYPE
Fixed Price Issues

OFFER PRICE
Price at which the securities are offered and would be allotted is made known in advance to the investors

DEMAND
Demand for the securities offered is known only after the closure of the issue

PAYMENT
100 % advance payment is required to be made by the investors at the time of application.

RESERVATIONS
50 % of the shares offered are reserved for applications below Rs. 1 lakh and the balance for higher amount applications. 50 % of shares offered are reserved for QIBS, 35 % for small investors and the balance for all other investors.

Book BuildingIssues

A 20 % price band is offered by the issuer within which investors are allowed to bid and the final price is determined by the issuer only after closure of the bidding.

Demand for the securities offered , and at various prices, is available on a real time basis on the BSE website during the bidding period..

10 % advance payment is required to be made by the QIBs along with the application, while other categories of investors have to pay 100 % advance along with the application.

More About Book Building Book Building is essentially a process used by companies raising capital through Public Offerings-both Initial Public Offers (IPOs) or Follow-on Public Offers ( FPOs) to aid price and demand discovery. It is a mechanism where, during the period for which the book for the offer is open, the bids are collected from investors at various prices, which are within the price band specified by the issuer. The process is directed towards both the institutional as well as the retail investors. The issue price is determined after the bid closure based on the demand generated in the process. The Process: The Issuer who is planning an offer nominates lead merchant banker(s) as 'book runners'. The Issuer specifies the number of securities to be issued and the price band for the bids. The Issuer also appoints syndicate members with whom orders are to be placed by the investors. The syndicate members input the orders into an 'electronic book'. This process is called 'bidding' and is

similar to open auction. The book normally remains open for a period of 5 days. Bids have to be entered within the specified price band. Bids can be revised by the bidders before the book closes. On the close of the book building period, the book runners evaluate the bids on the basis of the demand at various price levels. The book runners and the Issuer decide the final price at which the securities shall be issued. Generally, the number of shares are fixed, the issue size gets frozen based on the final price per share. Allocation of securities is made to the successful bidders. The rest get refund orders.

ASBA
1. What is ASBA? ASBA means Application Supported by Blocked Amount. ASBA is an application containing an authorization to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn/failed. 2. Detailed procedure of applying in IPO through ASBA.

Under ASBA facility, investors can apply in any public/ rights issues by using their bank account. Investor submits the ASBA form (available at the designated branches of the banks acting as SCSB) after filling the details like name of the applicant, PAN number, Demat account number, bid quantity, bid price and other relevant details, to their banking branch by giving an instruction to block the amount in their account. In turn, the bank will upload the details of the application in the bidding platform. Investors shall ensure that the details that are filled in the ASBA form are correct otherwise the form is liable to be rejected. 3. Who can apply through ASBA facility?

SEBI has been specifying the investors who can apply through ASBA. In public issues w.e.f. May 1, 2010 all the investors can apply through ASBA. In rights issues, all shareholders of the company as on record date are permitted to use ASBA for making applications provided he/she/it: a. is holding shares in dematerialized form and has applied for entitlements or additional shares in the issue in dematerialised form; b. has not renounced its entitlements in full or in part;

c.

is not a renounce;

d. who is applying through blocking of funds in a bank account with the Self Certified Syndicate Bank.

4. What advantage an investor has in applying through ASBA vis--vis applying through an application with a cheque? Applying through ASBA facility has the following advantages: (i) The investor need not pay the application money by cheque rather the investor submits ASBA which accompanies an authorization to block the bank account to the extent of the application money. (ii) The investor does not have to bother about refunds, as in ASBA only that much money to the extent required for allotment of securities, is taken from the bank account only when his application is selected for allotment after the basis of allotment is finalized. (iii) The investor continues to earn interest on the application money as the same remains in the bank account, which is not the case in other modes of payment. (iv) (v) 5. The application form is simpler. The investor deals with the known intermediary i.e. its own bank. Is it mandatory for investors eligible for ASBA, to apply through ASBA only?

No, it is not mandatory. An investor, who is eligible for ASBA, has the option of making application through ASBA or through the existing facility of applying with cheque. 6. Can I make application through ASBA facility in all issues?

Yes, you can make application through ASBA facility in all the issues i.e. public and rights. 7. Where should I submit my Application Supported by Blocked Amount (ASBA)? How shall I know which bank and which branch of that bank is the designated branch for accepting ASBA applications? List of the designated branches i.e. branches where ASBA application form can be submitted, is available on our website. 8. What is Self certified Syndicate Bank (SCSB)?

SCSB is a bank which is recognized as a bank capable of providing ASBA services to its customers. Names of such banks would appear in the list available on the website of SEBI. [Also see answer to question (6)] 9. Can I submit ASBA in any of the banks specified in the list of SCSBs?

No, ASBA can be submitted to the SCSB with which the investor is holding the bank account. 10. How many applications can be made from a bank account?

Five (5) applications can be made from a bank account per issue. 11. Am I required to submit ASBA only physically?

No, you can either fill up the physical ASBA form available with your share broker and submit the same to the designated branch or apply electronically/online through the internet banking facility. 12. Can I use the existing application form for public issues for applying through ASBA? Investor is requested to check the form carefully. In case of public issue, the application form for ASBA will be different from the existing application form for public issues. The application forms will be available with the share brokers. In case of rights issue, there will not be a separate form for ASBA. The investor has to apply by selecting ASBA option in Part A of the Composite Application Form. 13. Can I withdraw my ASBA bids? If yes, how? Yes, you can withdraw ASBA bids. During the bidding period you can approach the same bank to which you had submitted the ASBA and request for withdrawal through a duly signed letter citing your application number, TRS number, if any. After the bid closure period, you may send your withdrawal request to the Registrars before the finalization of basis of allotment, who will cancel your bid and instruct the Bank to unblock the application money in the bank account after the finalization of basis of allotment. 14. Whether my bank account will be blocked or only the amount to the extent of application money is blocked? No. the entire bank account will not be blocked. Only the amount to the extent of application money authorized in the ASBA will be blocked in the bank account. The balance money, if any, in the account can still be used for other purposes.

15. If I withdraw my bid made through ASBA, will the bank account be unblocked immediately? If the withdrawal is made during the bidding period, the Bank will delete the bid and unblocks the application money in the bank account. If the withdrawal is made after the bid closure date, the Bank will unblock the application money only after getting appropriate instruction from the Registrar, which is after the finalization of basis of allotment in the issue. 16.Do I necessarily need to have a DP account with the SCSB where I intend to submit the ASBA application? No. Investors need not necessarily have their DP account with the SCSB, where they are submitting the ASBA form. 17. Can I submit my ASBA to a broker as is being done in the present issue process applying through cheque? You are required to submit ASBA to the SCSBs only. 18. Can I apply in an issue through ASBA facility and through normal existing system of payment through cheque in an issue? No. An investor can apply either through ASBA or through existing system of payment through cheque. If an applicant applies through both, ASBA as well as non-ASBA then both the applications having the same PAN, will be treated as multiple application and hence will be rejected. 19. Are the bids submitted through ASBA and uploaded in the electronic bidding system of the stock exchange, in case of public issue through book building, reflect in the demand graphs displayed in the website of stock exchanges? Yes. The bids received through ASBA mode will also be reflected in the demand graphs displayed in the website of stock exchanges. 20. Will I get the acknowledgement of receipt for applications submitted through ASBA from the Bank? Yes. The SCSB shall give a counterfoil as an acknowledgement at the time of submission of ASBA and also the order number, generated at the time of uploading the application details, if sought by the investors in case of need. 21. Will there be any different treatment in allotment for ASBA and Non ASBA forms?

No. ASBA forms will be treated similar to the non-ASBA forms while finalizing the basis ofallotment. 22. What happens when the issue fails/is withdrawn? In case the issue fails/withdrawn the Bank shall unblock the application money from the bank accounts upon receiving instructions from the Registrar. 23. In case of any complaints regarding ASBA application whom can I approach? In case of any complaints the investor shall approach the bank, where the application form was submitted or the Registrars to the issue. 24. In case a person is having bank account with a branch, for example, at Delhi can he submit IPO application through ASBA at a branch in Cochin?. Yes, this can be done provided that the ASBA form is submitted at a designated branch of the bank at Cochin. 25. Is there a better chance of allotment if one applies in IPO through ASBA? The chance of getting allotment is same for all the applicants whether application is made through ASBA or non-ASBA. ASBA is a simple, easy and smart way of applying in public issues. There are many advantages of applying through ASBA like money does not go out of investors account, no hassle of refund, investor keep earning interest on the blocked amount as banks have started paying interest on daily basis w.e.f April 1, 2010 and it gives better opportunity for utilization of money.

Coal India Ltd.

Issue Open Date Issue Closing Date Application Money Allotment Money

18-Oct-10 21-Oct-10 100

Price Band Minimium Application No. Issue Size (Shares) Market Lot Objective

225 - 245 25 631636440 1

S h a r e h o l d e r a n d t o a c h i e v e t h e b e n e f i t s o f l i s i t

The objects of the Offer are to carry out the divestment of 631,636,440 Equity Shares by the Selling

n g t h e E q u i t y S h a r e s o n t h e S t o c k E x c h a n g e s .

Category No. of Shares No. of Shares Subscription Ratio

No. of Shares No. of Shares Subscription Ratio No. of Shares Subscription Ratio

Non-Institutional Investors Qualified Institutional Buyers Retail Individual Investors

Offered / Reserved 85270919 284236398 284236398

Bid For 2166004875 7019464125 7019464125

25.4014487049213 24.695866449166 24.695866449166

Business Description Promoter's Holding We are the largest coal producing company in the world (Source: CRISIL Total 631636380 Research), based on our raw Share 0 coalproduction of 431.26 million tons in Capital fiscal 2010. We are also the largest coal reserve holder in the world(Source: Offered 631636440 CRISIL Research) based on our reserve to Public base as of April 1, 2010. For further information on our reserveand resource Promoter' base, see Coal Reserve and Resource s Holding 100 Information beginning on page... (PreIssue) Promoter' s Holding 89.99 (PostIssue)

Address Coal Bhawan 10 Netaji Subhas Road Kolkata, West Bengal,

700001 Phone : +91-33-22488099 Email :complianceofficer@coalindia.inWebsite : www.coalindia.in Registrar Link Intime India Pvt Ltd. C-13 Pannalal Silk Compound L B S Marg Bhandup Mumbai Listed at BSE, NSE Lead Manager Citigroup Global Markets India Pvt Ltd. Deutsche Equities India Pvt Ltd DSP Merrill Lynch Ltd Enam Securities Pvt Ltd Kotak Mahindra Capital Co Ltd Morgan Stanley India Co Pvt Ltd Promoters The President Of India