Coal India IPO

This is one of the most expected IPO of the year. It’s a Navratna PSU Company headquartered at Kolkata, West Bengal. They are the producers of coking coal and non-coking coal of various grades for different applications. The government is disinvesting 10 per cent of its stake in Coal India (CIL), the world's largest coal miner, through the IPO. The IPO issue opens on 18th October,2010 and ends on 21st October,2010.
For the year ended March 31, 2010, the company has reported net profit of Rs 9,622.45 crore on total income of Rs 52,592.29 crore.

I heard from lot of people that there could be a market crash because of this IPO, people are selling out their existing stocks and accumulating cash in order to subscribe for this IPO. If you really ask me I would not recommend this strategy, I am not saying the company is not worth it but what I am trying to say is will this stock return the expectations of the investors is a big question. There is always a 52 week high and 52 week low for any stock. Show me one stock which has never fallen down. Patience pays a lot and that’s, my view on this stock. Recently lot of investors are attracted to IPO’s , if you are a big player this IPO is a definite yes, if you are a short term investor then be patient. I have seen lot of IPO’s gone up like a rocket and then went down like titanic ship.