Coal India Surges on Removal of Cap on E-auction Volumes

Shares of Coal India were in limelight in trades on Wednesday after a financial daily reported that the government has reverted from its six month old directive to halve Coal India's e-auction volumes.

 

The coal ministry has allowed to remove the cap on e-auction volumes with effect from April 2015. This move is likely to boost the profitability of the company as coal sold through e-auction generate higher margin for the company, analysts said.

 

This move will help Coal India to increase its e-auction volumes to 10 per cent of total sales, the report adds.

 

Reacting to this development, shares of Coal India surged as much as 6.3 per cent to hit intraday high of Rs 382.30. At 12:24 p.m., the stock was up 5.12 per cent at Rs 377.80. Trading volumes on the counter saw a spurt as 3,55,000 shares changed hands on the BSE compared to average 2,33,000 shares traded daily in the past two weeks. The stock was the top Nifty gainer as well.