Adani Enterprises emerges lowest bidder out of 11 bidders for Coal India's import tender; stock adds ~1%

5 Jul 2022 , 09:17 AM

Coal India Limited floated its first import tender on behalf of power companies, with Adani Enterprises Limited emerging as the lowest bidder.

According to the report, the company quoted Rs4,033 crore for the supply of 2.416 million tonnes of coal on a freight-on-road (FOR) basis.

Mohit Minerals and Chettinad Logistics followed Adani in the bidding process, quoting Rs4,182 crore and Rs4,222 crore, respectively. The bidding process opened on Friday.

The bidding process was joined by a total of 11 importers and some overseas traders have also shown interest in the tender during the pre-bid meeting, commented Coal India earlier.

Gautam Adani’s Adani Enterprises won several coal imports contracts between January and June. Last December, the company shipped the first coal shipment from its Carmichael mines in Queensland, Australia.

Adani Enterprises is also seeking further two tenders totaling six MT from Coal India.

Following the close of bids, Coal India will execute a contract with the highest bidder, entering into a back-to-back agreement with state gencos and independent power producers (IPPs) to receive the imported coal.

CIL is importing coal because the central government wants to ensure that power plants have enough stock before the monsoon season, which affects coal mining and causes a decrease in supply. The nation’s power demand peaks after the monsoon due to an increase in agricultural requirements and warm weather conditions.

Adani Enterprises is currently trading at Rs2,284.45 up by Rs23.85 or 1.06% from its previous closing of Rs2,260.60 on the BSE. The scrip opened at Rs2,260.90 and has touched intraday high and low of Rs2,290.30 and Rs2,260.90 respectively.