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Commentary

Readings: China Raises Rates, Coal India, Bond Yields

China takes rates up 25 basis points. Inflation, it seems. Lending rates are now 5.56%.

Coal India’s 15,000 crore IPO is 1.7 times oversubscribed.

Coal India IPO statistics

For the record: I looked at the IPO document, realized I don’t understand a darn thing about coal, and know just two things:

  • The P/E is 15 or so. This is a commodity. Big and all, but they won’t get a single paisa from this IPO (it all goes to the govt).
  • The issue is already oversubscribed, but retail will perhaps get full only by 21st (when the issue ends)

I’m not subscribing – there are better opportunities out there. (Biocon – yes, even now. Sugar looks like a better cyclical, Auto-ancilliaries, etc. )

India’s 10-year bond yields are at 8.07% while 91-day T-bills are at 6.6%. This is one narrow band.

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