Coal India stock rises 7%, hits 52-week high; here's why

Shares of Coal India Ltd (CIL) surged to a fresh 52-week high in the afternoon session today after a major development with regards to the e-auction process. Country's largest coal firm has permitted coal consumers located in the neighbouring countries such as Bangladesh, Bhutan and Nepal, who wish to import coal from India, to directly participate in the Single Window Mode Agnostic (SWMA) auctions
conducted by the company.

CIL’s Board has cleared the decks recently for the move, tweaking the scheme’s mechanism in the SWMA auction. 

Coal India shares climbed nearly 7% to Rs 427.85 against the previous close of Rs 400.35. Market cap of the firm rose to Rs 2.63 lakh crore. Total of 20.12 lakh shares of the firm changed hands amounting to a turnover of Rs 84.62 crore. 

"Opening SWMA e-auctions to foreign buyers reflects CIL’s calibrated approach to market expansion while fully safeguarding domestic coal requirements. This step enhances transparency, competition and global market integration” said a senior company official. 

Under the revised framework, foreign buyers can participate alongside domestic buyers in SWMA auction. Earlier, access to CIL’s coal by coal consumers across the borders was only through domestic coal traders who were allowed to buy and sell coal without any end use restrictions.