CIL to become most valuable PSU after ONGC takeover

Posted By: Religare
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CIL to become most valuable PSU
After touching a 52 week high of Rs. 339, CIL announced its takeover on ONGC. The takeover made CIL the most valuable PSU of India in terms of market capitalisation (m-cap).

The takeover occurred after ONGC recorded a loss of 2.37 lakh crore after its stock suffered a loss of Rs 19.55. On the contrary, CIL gained the shares at 397.60 gaining Rs 8.70 a share at close. The stock statistoces led many investors to change hands on ONGC counter on the BSE.

CIL was able to achieve its position, six month later it came out with an IPO, October 2010. The shares in the IPO were sold at a price of Rs 245 per share.Besides the takeover, news have been heard about the CIL being in talk to buy 15% stake in a joint venture with US-based Peabody Energy's minning project in Australia.

The amount involved in the venture is estimated to be US$600mn. Thus, the growing profit let the stocks of the company trade at more than 17.5 lakh shares as compared to the two-week average of 8.74 lakh shares.

Read more about: bse, nse, cil, psu
Story first published: Wednesday, May 18, 2011, 9:30 [IST]
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