Coal India gains on the buzz of plan to enter into JV with GAIL, RCF and FCIL

Coal India is currently trading at Rs. 392.25, up by 1.15 points or 0.29% from its previous closing of Rs. 391.10 on the BSE. The scrip opened at Rs. 393.50 and has touched a high and low of Rs. 397.15 and Rs. 390.15 respectively. So far 355810 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 417.00 on 26-May-2014 and a 52 week low of Rs. 215.47 on 30-Aug-2013. Last one week high and low of the scrip stood at Rs. 397.30 and Rs. 367.05 respectively. The current market cap of the company is Rs. 249085.83 crore. The promoters holding in the company stood at 89.65% while Institutions and Non-Institutions held 8.27% and 2.08% respectively. Coal India is reportedly planning to enter into Rs 10,000-crore joint venture with GAIL India, Rashtriya Chemicals & Fertilizers (RCF) and The Fertilizer Corporation of India (FCIL) to set up a urea and ammonium nitrate chemicals complex that will run on gasified coal. In this regard, Coal India has appointed Projects and Development India (PDIL) to conduct a feasibility study on the project. The plan is to use around 6 million tonnes of coal from coalfields at Talcher in Odisha and manufacture about 3 lakh tonnes of urea annually and around 300-400 tonnes of ammonium nitrate per day. Ammonium nitrate is the principal ingredient for making explosives used as blasting material at coal mines. Coal India is the world’s largest coal mining company. It also produces non-coking coal and coking coal of various grades for diverse applications.