Coal India's stock tumbles despite getting rousing response in first e-auction

9 Mar 2022 , 02:26 PM

Coal India’s stock took a downturn on Wednesday trade and was trading at Rs187.85, down by 0.63% or Rs1.20 against its previous closing price of Rs189.05.

Earlier today, Coal India announced that the company’s first-ever offer of nearly 5.2 Lakh Tonnes (LTs) of coal under the recently revamped single-window e-auction received an overwhelming response from the consumers with 100% of the offered quantity getting booked.

CIL conducted an e-auction in two of its subsidiaries on March 3, 2022, after it merged multiple auction windows in a solitary outlet.

The entire quantity of 3.2 LTs offered by Northern Coalfields Limited, under the newly structured auction window, was 100% booked. Also, 1.98 LTs placed under the sole e-hammer by Eastern Coalfields Limited got completely ordered.

From now onwards, consumers from both regulated and non-regulated sectors and traders have to vie for coal under one common window.

“The big upshot is the discovery of true market price for coal with the removal of the segmentation. Earlier, we were using the same coal to fetch different prices in different e-auction windows. Another point in favour of the new system is increased transparency as all the offered coal will be placed in a single basket.” said an official of CIL.