Gateway to Prosperity

COAL INDIA LIMITED

Issue Period - 18 Oct to 21Oct 2010

Issue Size - 63,16,36,440 Equity Shares
Price Band - Rs. 225 to Rs. 245
Market Lot - 25 Equity Shares

Incorporated in 1973, Coal India Limited is the largest coal producing and coal reserve
holding company in the world. This Government owned company has status of “Navratna”
of India.

Coal India produce non-coking coal and coking coal of various grades for diverse
applications. It has produced 431.26 million tons of raw coal in fiscal year 2010. It operates
471 mines in 21 major coalfields across 8 states in India, including 163 open cast mines, 273
underground mines and 35 mixed mines (includes both open cast and underground mines).
They also operate 17 coal beneficiation facilities with an aggregate designed feedstock
capacity of 39.40 million tons per annum. Besides this, they provided 85 hospitals and 424
dispensaries.

As on April 2010, its resources were 64218 million ton and had reserve of around 18862 million
ton. It contributes around 81% of total coal production in country. Its major consumers are
the power and steel sectors. Others include cement, fertilizer, brick kilns, railways, etc. Power
generating companies receive around 77% of coal from Coal India.

Coal India has 9 direct subsidiaries & 2 indirect subsidiaries in India. It also has 1 foreign
subsidiary, Coal India Africana Limited situated in Mozambique, Africa. As on today they
have 45 projects in hand. Further they are seeking for foreign acquisitions for increasing their
coal reserves & for the same they are going to spend Rs. 6000 crore this year. In future they
may enter power production business.

As on June 2010 its net worth is Rs 283879 million. Its total income was Rs 131100 million with
PAT of Rs 25217 million. Its ROE was 44%, EPS 3.99 for the quarter ended June 2010 which
indicates EPS of around 16 for the current fiscal year showing its good performance
compared to other coal producers of world like China’s Shenhua Energy.

Its most awaited IPO is of around Rs 15000 crore offering 63 crore equity shares (face value Rs
10 each) i.e 10%of the fully diluted post offer paid up capital. Employees & retailer will get 5
% discount on issue price. Its BRLM are Morgan Stanley, Enam Securities, Kotak Mahindra,
Citigroup Global Capital India Pvt Ltd. Its listing will be on 4th November.

Issue Name Issue Period Price Band Market Premium Rating* CRISIL
Lot & ICRA
Rating
COAL INDIA 18/10 TO 21/10/2010 Rs.225-245 25 Rs.20-22 55 5
LTD
# Plz. Note Rating Criteria : 30 or lower = Avoid Investment, 31 – 40 = Risky, 41 – 50 = Invest with limited
exposure 50 – 60 = Investment Recommended, 60 and above = Excellent Investment