Coal India trades in green on the bourses

Coal India is currently trading at Rs. 347.50, up by 8.30 points or 2.45% from its previous closing of Rs. 339.20 on the BSE.

The scrip opened at Rs. 342.95 and has touched a high and low of Rs. 349.00 and Rs. 342.90 respectively. So far 1, 21,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 422.30 on 31-May-2011 and a 52 week low of Rs. 293.75 on 22-Dec-2011.

Last one week high and low of the scrip stood at Rs. 349.00 and Rs. 328.55 respectively. The current market cap of the company is Rs. 2, 19,493 crore.

The promoters holding in the company stood at 90.00% while Institutions and Non-Institutions held 7.20% and 2.80% respectively.

State run Coal India’s board has given their approval for signing Fuel Supply Agreement (FSA) with power companies before April 20, 2012. The coal major, however, has agreed to keep the penalty for failing to supply at least 80 percent of the contracted coal, but at a minimum level. The Maharatna company will pay a penalty of an average of 0.01 percent of shortfalls in supplies.

The government on April 3 issued a presidential directive to CIL to commit a minimum assured fuel supply to the power producers, failing to which the company would be subject to paying a penalty. Keeping in mind the intense lobbying by the power sector, the government directed Coal India (CIL) to guarantee long-term supplies to the power sector, even if it has to resort to imports.

Coal fuels more than half the power generated in India, which does not produce enough power to meet the demands of a fast-growing economy and increasingly affluent population of 1.2 billion people.