Coal India up 5% on hike in non-coking coal prices

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NMDC was trading 4% lower at Rs 155 on BSE in early morning trade as the government 1.5% stake sale programme in mining company commenced today. The government has fixed a floor price of Rs 153.50 apiece, is at a discount of 5% over the closing price of Rs 161.85 on Monday.

The two-day offer for sale (OFS) will open for institutional investors on Tuesday and for retail investors on Wednesday.

"The Promoter proposes to sell up to 47.46 million (1.5%) equity shares of the face value of Re 1/- each on January 09, 2018 (for non-Retail Investors only) and on January 10, 2018 (for Retail Investors and for non-Retail Investors who choose to carry forward their un-allotted bids) with an option to additionally sell up to 47.46 million (1.5%) equity shares of NMDC Share Price," the company said in a notice of OFS.

The stock hit a 52-week high of Rs 163 on BSE on Monday, January 8, 2018 in intra-day trade had outperformed the market by gaining 23% in past one month. On comparison, the benchmark S&P BSE Sensex was gained 3.3% till yesterday.

State-run miner Coal India (CIL) today said its board has approved a hike in non-coking coal prices for both both power and non-power consumers with immediate effect.

Coal India sources indicated that the average price hike could be around 10 per cent.

Due to this revision, the world's largest coal miner will earn an incremental revenue of Rs 1,956 crore for the remaining period of the 2017-18 fiscal year while totalrevenue will be Rs 6,421 crore, the company said in a regulatory filing.

The price hike will be applicable to "all subsidiaries ofCoal India, including NEC for regulated and non-regulated sectors", the filing said.

Shares of the company soared by 3.67 per cent to Rs 298.40 on BSE after the announcement.

The miner was compelled to revise prices in the wake of rising costs which was a drag on its profitability for the last few quarters.

CIL had last revised price for the fossil fuel in May 2016 by 6.3 per cent on an average that helped the miner to collect additional revenue of Rs 3,234 crore in 2016-17.

Coal India slapped a levy of Rs 50 per tonne as coal evacuation charges in early December which is set to earn the public sector miner Rs 2,500 crore every year.

In the remaining part of 2017-18, additional revenue from evacuation levy will be Rs 800 crore.

The recent wage revision had pushed up its annual employees cost by additional Rs 5,600 crore.

Meanwhile, Coal India also said sales bills will be raised on GCV (kcal/Kg) basis with effect from April 1, 2018 and the present mode of raising bill would continue till then.

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