GAIL India and Coal India, on Tuesday, March 25, announced the incorporation of a joint venture (JV) to establish a coal-to-synthetic natural gas (SNG) project in the eastern coalfield.
Both state-run Maharatna companies announced in separate exchange filings on March 25 that they have entered a joint venture through Coal Gas India Limited.
GAIL, Coal India JV details
For the joint venture, a new subsidiary of Coal India, ‘Coal Gas India Limited’ has been incorporated.
“The Ministry of Corporate Affairs, Government of India, has issued a certificate of incorporation to Coal Gas India Limited,” said Coal India in an exchange filing.
According to the exchange filing, Coal Gas India Limited has an authorised share capital of ₹11 crore. It has an initial paid-up capital of ₹1 lakh, with Coal India’s share of ₹51,000 and GAIL’s share of ₹49,000.
Coal India has 5,100 equity shares of the company at ₹10 each, while GAIL has 4,900 equity shares at ₹10. Thus, Coal India has a 51 per cent stake and GAIL has a 49 per cent stake in Coal Gas India Limited.
The JV’s object is to set up the coal-to-synthetic natural gas project and use the end product in accordance with the prevailing market conditions.
Coal India share price trend
Extending the losses to the second consecutive session, Coal India’s share price closed 1.84 per cent lower at ₹398.40 on Tuesday.
The stock has declined about 8 per cent over the last year. However, it has seen some gains this month. Till the close of March 25, the stock has jumped 8 per cent this month.
Coal India’s share price hit a 52-week high of ₹544.70 on August 26 last year and a 52-week low of ₹349.20 on February 17 this year.
GAIL India share price trend
GAIL India’s share price closed 2.07 per cent lower at ₹177.55 on Tuesday, snapping the winning run of the last five consecutive sessions.
Its performance in the last year has been muted. The stock has gained just 2 per cent over the last year. However, this month, the stock has jumped nearly 14 per cent.
It hit a 52-week high of ₹246.35 on July 31 last year and a 52-week low of ₹150.60 on March 4 this year.
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