Barely six months after it hit the market in November, Coal India on Tuesday became the most valuable public sector company in terms of market capitalisation, surpassing Oil and Natural Gas Corp (ONGC). It’s now only second to Reliance Industries Ltd in terms of market value of listed firms.
ONGC, which listed in 1993, saw its share prices fell by 6.7% on Tuesday as it came under pressure on reports that the government has increased its share of fuel subsidy. Coal India shares saw its share price jump by 2.1%.
While CIL’s market cap stood at R250,159 crore on Tuesday, ONGC’s slipped to R237,457 crore from R254,525 crore on Monday.
Coal India has been the biggest gainer in terms of market capitalisation among the top three Indian companies since their listing. While ONGC and RIL has slipped by 16.6% and 13.6% between November 3 and May 17, CIL has risen by 65% over its IPO price of R240.If CIL continues with its run, it may become the most valued Indian company in some time.
“If the run of Coal India continues, and considering the fact that RIL has remained in a range for almost the past 2 years, we may even see Coal India replacing RIL,” said Jagannadham Thunuguntla, research head, SMC Global Securities.