Coal India fell 2.40% to Rs 278.60 at 9:16 IST on BSE on reports that the competition regulator has imposed a fine of Rs 1773.05 crore on the company for abusing its dominant position.
Meanwhile, the BSE Sensex was down 65.50 points, or 0.31%, to 21,189.76.
On BSE, so far 26,000 shares were traded in the counter, compared with an average volume of 2.78 lakh shares in the past one quarter.
The stock hit a high of Rs 279 and a low of Rs 274.95 so far during the day. The stock hit a 52-week high of Rs 372.10 on 10 January 2013. The stock hit a record low of Rs 238.35 on 30 August 2013.
The stock had underperformed the market over the past one month till 10 December 2013, sliding 1.99% compared with the Sensex's 2.85% rise. The scrip had also underperformed the market in past one quarter, falling 1.02% as against Sensex's 6.29% rise.
The large-cap company has an equity capital of Rs 6316.36 crore. Face value per share is Rs 10.
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According to reports, the Competition Commission of India (CCI) imposed a penalty of Rs 1773.05 crore on the company and its subsidiaries for abusing their dominant position as suppliers of non-coking coal to power producers. The penalty was imposed by CCI through an order dated 9 December 2013, reports suggested.
The specific charges against Coal India were: supplying low-quality coal at high prices; retaining the right to unilaterally terminate contracts with buyers; not providing a fair dispute redressal mechanism; and preferring other state-owned companies over private buyers of coal.
The antitrust regulator also fined Coal India units Mahanadi Coalfields, Western Coalfields and South Eastern Coalfields.
The company has the right to appeal against the order with the Competition Appellate Tribunal, media reports suggested.
Coal India's consolidated net profit declined 0.83% to Rs 3052.36 crore on 5.57% growth in total income to Rs 17594.28 crore in Q2 September 2013 over Q2 September 2012.
Coal India is the largest coal producer in the world.
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