Gallantt Ispat Locked at Upper Circuit Limit

Introduction

Gallantt Ispat Limited is proud to announce that it has been declared the successful “Preferred Bidder” for the Todupura Iron Ore Block in Rajasthan. This achievement marks a significant milestone for the company, ensuring a stable and self-reliant supply of raw materials for its operations.

Successful Bid in e-Auction

The declaration follows the e-auction conducted by the State Government of Rajasthan on May 2, 2024, through the MSTC e-auction portal. Gallantt Ispat Limited submitted the highest final price offer of 175.05%, which led to its selection as the preferred bidder. The official communication from the Director of Mines & Geology, Government of Rajasthan, confirmed this status on June 15, 2024.

Stock Performance

Shares of Gallantt Ispat have risen by 5% on Tuesday, locked at the upper circuit limit. With this up-move, the stock has recorded a fresh 52-week high of Rs 331.80 per share. The stock opened at Rs 316, which was also the intraday low for the day.

Steps Ahead

As per the tender document’s terms, Gallantt Ispat Limited will undertake all necessary steps to obtain the Letter of Intent and secure all statutory clearances. This includes executing the Lease Deed with a Mine Development and Production Agreement (MDPA) to commence mining operations.

Geological Data and Mining Potential

The Todupura Iron Ore Block spans 260.71 hectares and boasts a total iron ore deposit of 85.42 million tons. This extensive reserve underscores the significant potential for sustained mining operations and raw material supply.

Strategic Importance for Gallantt Ispat

The iron ore mined from this block will primarily serve the Gujarat Steel Unit of Gallantt Ispat. In-house mining ensures operational flexibility, reliable raw material availability, and eliminates dependency on external suppliers. This strategic move is expected to result in considerable cost savings and enhance the company’s operational and net profits over the next 20-25 years.

Conclusion

This milestone reaffirms Gallantt Ispat Limited’s commitment to self-reliance and operational efficiency. The company will continue to comply with all regulatory requirements and strive to achieve excellence in its mining operations, contributing to its long-term growth and profitability.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.