Shares of Coal India gained on September 24 after the state-owned company said that it has entered into a joint venture agreement with Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL) to undertake renewable energy business in Rajasthan.
Coal India will have a 74 percent shareholding in the JV while RRVUNL will have remaining 26 percent.
The JV is for setting up of 2x800 MW Brownfield thermal power project in RRUVNL's existing Kalisindh Thermal Power Station and/or undertaking any other thermal power business related projects including renewable generation obligations, informed Coal India.
The joint venture company will be incorporated as a private limited company with an initial paid-up share capital of Rs 10 lakh.
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The authorized share capital of the joint venture company (JVC) will be Rs 10 crore consisting of one crore equity shares priced at Rs 10 each. Shares will be issued after incorporation of JVC in the ratio of equity shareholding.
The registered office of the JVC will be located in Jaipur, Rajasthan, India. Coal India Ltd (CIL) will have the right to nominate four executives as directors, while RRVUNL can nominate two executives as directors, the mining PSU said in a regulatory filing.
At 9:19 am, Coal India shares were trading half a percent higher at Rs 503.30 on NSE. The stock has rallied 31 percent so far this year, outperforming Nifty's returns of 19 percent. In the past 12 months, the counter has risen 74 percent. In comparison, Nifty rose 31 percent during this period.
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