Maha govt okays Lloyds Metals’ Rs 20,000-cr project; stock up 26% in 4 days
Shares of Lloyds Metals and Energy hit a record high of Rs 241, surging 7 per cent on the BSE in Monday’s intra-day trade, as trading volume jumped nearly two-fold on Monday. In the past four trading days, the stock of the iron & steel company has soared 26 per cent after the Maharashtra Government cleared a project worth of Rs 20,000 crore.
The stock surpassed its previous high of Rs 232, touched on April 21, 2022. At 02:15 PM, it was trading 7 per cent higher at Rs 239.45. In comparison, the S&P BSE Sensex was up 0.50 per cent at 61,645. Average trading volumes on the counter jumped 1.8 times with a total 460,000 shares changing hands on the counter. This is against an average volume of 258,000 shares that traded daily in the past two weeks, BSE data shows.
The Maharashtra State’s cabinet sub-committee on industries on December 13, 2022 cleared 13 projects worth Rs 70,000 crore, including as many as three large projects worth Rs 35,520 crore that will come up in Gadchiroli and Chandrapur districts. Of this, it has cleared a project worth Rs 20,000 crore by Lloyds Metals and Energy. The company clarified that these approvals are preliminary and require a series of regulatory and internal approvals.
The company has made clarification in reference to various media articles and news reports about the Maharashtra Government approving various investment approvals and having mentioned approving Lloyds Metals and Energy investments as well.
Lloyds Metals is increasing its sponge manufacturing capacity by 72,000 tonnes via the sponge plant in Konsari, Gadchiroli, from 270,000 tonnes in Ghughus, Chandrapur. The company is also working on increasing its iron ore mining capacity to 10MMTPA from 3MMTPA.
These expansion plans would play a significant and immediate role in formulating the company’s future roadmap. In this regard, necessary regulatory approvals are awaited. The company further said it is also undertaking a detailed evaluation of the reserves of its mine, situated at Gadchiroli.
Lloyds Metals and Energy is a Direct Reduced Iron (DRI) manufacturer and one of the largest merchant iron ore miners in Maharashtra, India. It has a 270,000 tonnes per annum capacity for DRI and 30MW waste heat recovery based (WHRB) power plant. The company has had a mining lease over an area of 348.09 Ha. for iron ore at Surjagarh Village, Gadchiroli district in the State of Maharashtra for 50 years.
The company also has a coal washery for 1 million tonne, which further aids in increasing the throughput for its Sponge and power plant. With its iron ore mine advantageous location, it’s been able to access all the key markets across PAN India.
In FY23, Lloyds Metals and Energy plans to dispatch approximately 5.5 MMT, by reducing the stock at the Pithead. The Company has also got the mining plan approved for 10 MMTPA and environment clearance for the same is awaited. All the above facts indicate a significant increase in production capacity from the F.Y. 2022-23 onwards Going forward all future Investments will be from internal accruals & net debt target will be kept at zero, the company said in its FY22 annual report.
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