Share prices of this company engaged in mining and production of coal moved up by 2.09 percent on Thursday to Rs. 390.75 after the company received approval for setting up two projects.
With a market cap of Rs. 2,38,528 crore, shares of Coal India Ltd. (CIL) opened at Rs. 387.25 on January 25 from its previous close of Rs. 382.75. On January 23, the shares of CIL hit a new all-time high at Rs. 404.80.
The company has delivered nearly 68.25 percent returns in the last six months, whereas it has given more than 70.7 percent in the last one year. So far, it has given returns of around 1.2 percent in 2024.
According to the Ministry of Coal, the Cabinet Committee on Economic Affairs (CCEA) approved the proposal for equity investment by CIL for setting up of Coal-to-SNG (Synthetic Natural Gas) project and Coal-to-Ammonium Nitrate project at the MCL (Mahanadi Coalfields) command area.
CIL will set up two coal gasification plants with a view of achieving the target of 100 MT coal gasification by the year 2030 as well as fulfilling the dual objectives of self-reliance and energy independence of India.
The first project involves setting up of the proposed Coal-to-SNG project through a joint venture between Coal India and GAIL at the Sonepur Bazari Area of Eastern Coalfields Limited (ECL) in the Burdwan district of West Bengal.
CIL will invest Rs. 1,997.08 crore, accounting for 51 percent in the joint venture and the project has an estimated cost of Rs. 13,052.81 crore, considering a debt-to-equity ratio of up to 70:30.
Similarly, the second project of setting up the Coal-to-Ammonium Nitrate project is through a joint venture between Coal India and BHEL at the Lakhanpur Area of Mahanadi Coalfields Limited (MCL) in the Jharsuguda district of Odisha.
CIL will invest Rs. 1,802.56 crore, accounting for 51 percent in the joint venture and the project has an estimated cost of Rs. 11,782.05 crore, considering a debt-to-equity ratio of up to 70:30.
In terms of financials, the total revenue of Coal India grew by 10 percent from Rs. 31,599.2 crore in Q2 FY22-23 to Rs. 34,760.3 crore in Q2 FY23-24, accompanied by an increase in net profit by 12.5 percent from Rs. 6,043.6 crore in Q2 FY22-23 to Rs. 6,799.8 crore in Q2 FY23-24.
As of December 2023, FIIs hold 8.59 percent of the shares, whereas DIIs hold 23.06 percent of the shares in the company, aggregating to 31.65 percent of the institutional holdings.
Established in 1975, Coal India Limited is a Maharatna company and a state-owned coal mining company. It is the single largest coal producer in the world and is mainly engaged in mining and production of coal and also operates coal washeries.
Written by Shivani Singh
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