CIL arm issues preferential shares worth Rs 2,539 crore

Coal India (CIL) said on Monday its subsidiary Bharat Coking Coal Ltd (BCCL) has issued preferential shares worth Rs 2,539 crore to the company.

"BCCL has issued 25,390,000 numbers of five per cent non-convertible, redeemable, cumulative preference shares at Rs 1,000 each aggregating to Rs 2,539 crore in favour of Coal India on March 26," CIL said in a regulatory filing.

These preferences are to be redeemed at the end of seven years from the date of issue of these securities.

However, CIL would have the option to redeem them at any time after a period of five years, it said.

Dhanbad-based BCCL had earlier said that it has come out of the board for industrial and financial reconstruction (BIFR). The coal firm was loss-making and eventually referred to the BIFR.

BCCL, the only producer of prime coking coal in the country, was previously referred as a perennially sick undertaking.