Gallantt Ispat shares hit 5% upper circuit on securing iron ore block in Rajasthan

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Gallantt Ispat Ltd on Tuesday, June 18, announced that the company has been declared as a preferred bidder for an iron or block in Rajasthan, sending its shares higher by 5% to hit upper limit as well as year-high levels.

The company stated that it has received a letter from the Director of Mines and Geology, Government of Rajasthan, on June 15 for the composite licence for Todupura Iron Ore Block in Karauli district.

Gallantt Ispat Ltd shares gained as much as 5% to hit a 52-high of ₹333.25 per share, also its upper circuit limit, on BSE following the announcement.

The e-auction of the block was conducted by the Rajasthan government on May 2, 2024, on the MSTC e-auction portal.

The company submitted and offered the highest final price offer of 175.05% to become a successful "Preferred Bidder".

As per topographical studies, the iron ore investigated area is 260.71 hectares and the total ore deposit is 85.42 million tonnes, Gallantt Ispat said.

The block has been allotted for the company’s Gujarat Steel Unit. The mine will ensure in-house supply of the basic raw material, bring operational flexibility, easy availability and no dependency on international as well as domestic suppliers of iron ore for 20-25 years, the company informed the bourses.

By owning and efficiently operating through captive iron ore mining, significant cost savings can be realised and sustained which, in turn, would surge the operating as well as net profit of the company considerably, it added.

The company will take all requisite steps to obtain the Letter of Intent, all statutory clearances to execute the Lease Deed with Mine Development and Production Agreement (MDPA) and start the mining operations, according to the filing.

Gallantt Ispat has two plants in Uttar Pradesh and Gujarat. The company produces sponge iron, iron millets and TMT bars.

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