Coal India, the world's largest coal miner, said it would get $1.4 billion in additional revenue in the next fiscal year from a revision in coal prices announced on Monday, sending its shares up more than 11 percent.
The price hike will bring in additional sales of 6.5 billion rupees ($143 million) in this fiscal year that ends on March 31, the company said, adding its board had approved revision of the coal prices effective from Sunday.
The state-owned company did not mention the quantum of the price hike.
Shares of Coal India rose as much as 11.2 percent on Monday on the price hike report to 324.45 rupees, their highest level in more than two months, in the main Mumbai market that was trading 0.9 percent higher.
According to Thomson Reuters I/B/E/S, the company's revenue in this fiscal year is seen at 516 billion rupees and at 572 billion rupees for the year beginning on April 1. Based on those numbers, the additional revenue will raise Coal India's total revenue in the next fiscal year by about 11 percent.
Kolkata-based Coal India accounts for nearly 80 percent of India's coal output. In November, the federal government raised $3.4 billion from a 10 percent stake sale in the company, marking the country's largest ever initial public offering.