Shares of Adani Power surged over 6 per cent to hit intraday high of Rs 60.15 on Thursday after the Gautam Adani group company bagged the Jaitpur coal block on the first day of the second phase of coal auction yesterday.
Adani Power won the Jitpur mine in Jharkhand for Rs 302 a tonne. It outbid Jindal Steel & Power, who won the block earlier.
This block has extractable coal of 2.5 million tonnes.
Adani Power will use this coal to replace imported coal at Mundra III plant. Analysts say this mine can meet 15 per cent of its 17 mtpa coal deficit annually.
This mine can reduce loss of Mundra plant by 40 per cent, analysts believe.
Shares in Adani Power ended 4.9 per cent higher at Rs 59.35 apiece, outperforming the broader Nifty, which closed 0.17 per cent higher.
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