Coal India gains on plans to foray into fertilizers and chemicals business

Coal India (CIL) is currently trading at Rs. 421.65, up by 1.40 points or 0.33% from its previous closing of Rs. 420.25 on the BSE. The scrip opened at Rs. 422.85 and has touched a high and low of Rs. 423.85 and Rs. 415.20 respectively. So far 226860 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 423.50 on 10-Jun-2014 and a 52 week low of Rs. 238.35 on 30-Aug-2013. Last one week high and low of the scrip stood at Rs. 423.50 and Rs. 385.55 respectively. The current market cap of the company is Rs. 266992.72 crore. The promoters holding in the company stood at 89.65 % while Institutions and Non-Institutions held 8.27 % and 2.08 % respectively. In a bid to foray into the business of fertilisers and chemicals, Coal India has decided to amend its memorandum of association (MoA). The amendment will allow the Maharantna firm to produce, process, store, distribute, sell import, export or otherwise deal in gas and other byproducts arising from coal gasification and use them to produce ammonium nitrate, fertilisers and associated products.The amendment will also permit the coal PSU to install and operate such plant in the country and overseas. Meanwhile, 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. 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.