Monday 23 September 2013

SAIL surges on plan to build-up Bhilwara iron ore mine in Rajasthan

Steel Authority of India is currently trading at Rs 53.25, up by 1.15 points or 2.21% from its previous closing of Rs 52.10 on the BSE.

The scrip opened at Rs 52.60 and has touched a high and low of Rs 53.70 and Rs 52.25 respectively. So far 244463 shares were traded on the counter.

The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 101.60 on 07-Jan-2013 and a 52 week low of Rs 37.65 on 07-Aug-2013.

Last one week high and low of the scrip stood at Rs 52.85 and Rs 47.00 respectively. The current market cap of the company is Rs 21520.04 crore.

The promoters holding in the company stood at 80.00% while Institutions and Non-Institutions held 16.54% and 3.45% respectively.

In a bid to partially meet its increased iron ore need, state-owned steel major Steel Authority of India (SAIL) is planning to build-up Bhilwara iron ore mine in Rajasthan and set up a pellet plant with 2 million tonne per annum capacity at the site. In this regard, the company will invest Rs 800 crore.

The company will start looking for required approval soon after getting the Letter of Intent (LoI) from Rajasthan government and production from the mine is likely to start in 3-4 years.

The company in general requires 1.6 tonnes of iron ore for producing every tonnes of steel and the Bhilwara mine will help the company will to partially meet its increased iron ore need. Though, the company never had iron ore problem. Last year, it had produced 21.48 MT ore to make 13.4 mt crude steel.

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