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Coal India shares surge 39 percent on debut

Coal India shares surge 39 percent on debut

Shares in state-run Coal India, the world's largest coal mining company, surged 39 percent on their first day of trading Thursday, a sign of robust investor interest that bodes well for the government's plan to raise $9 billion from asset sales.
Coal India touched a high of 340 rupees a share on the Bombay Stock Exchange Thursday morning, compared with an offering price of 245 rupees a share.
The government sold 10 percent of its stake in Coal India, which controls about 80 percent of the nation's coal market, raising $3.4 billion in India's largest IPO ever.
India plans to sell stakes in a raft of state companies, including Power Grid Corp., Manganese Ore India and the Steel Authority of India, as it seeks funds to plug the fiscal deficit and pay for costly social programs.
The biggest offerings, of state oil giants Indian Oil Corp. and Oil and Natural Gas Corp. Ltd., should hit the market between January and March of next year. Together those two IPOs could raise $7.8 billion at current market rates.