If TCI is unhappy, it can sell off its stake in Coal India. That's the response from coal secretary Alok Perti.
If TCI is unhappy, it can sell off its stake in Coal India . That's the response from coal secretary Alok Perti.
The Children's Investment Fund, the largest FII investing into Coal India, had recently wrote to the management regarding issues on corporate governance and CIL failing to protect the interests of minority shareholders. The UK fund had threatened to take legal action if a detailed response was not given.
In the letter, TCI alleged that Coal India reversed a decision to raise coal prices on instructions from the government. TCI had obtained a letter written by the coal secretary to NC Jha, the then chairman of CIL, through the Right to Information (RTI) Act.
However, Perti denied receiving any such communication. In fact, he goes on to say that the TCI is influencing the independent board directors' decisions on signing of FSAs or fuel supply agreement with private power companies.
The government had asked Coal India to sign FSAs at trigger level of 80% and the Coal India board is scheduled to meet again on March 28 to take a call on the issue. Secretary coal also clarified that about 6% increase in coal production for FY13 and stock of 60-70 million tonne of coal will help meet the targeted FSAs with the power companies.
Coal India stock price
On January 30, 2015, Coal India closed at Rs 360.85, down Rs 14.3, or 3.81 percent. The 52-week high of the share was Rs 423.85 and the 52-week low was Rs 240.50.
The company's trailing 12-month (TTM) EPS was at Rs 21.06 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 17.13. The latest book value of the company is Rs 26.04 per share. At current value, the price-to-book value of the company is 13.86.
Set email alert for
ADS BY GOOGLE
video of the day
Market technically overbought; paper supply to weigh: Dutt