Sarda Energy & Minerals Gains 13% Following Maharashtra Iron Ore Block License

On March 22, 2024, the shares of Sarda Energy and Minerals were trading with gains of more than 13%, which marked the company’s biggest single-day gain since June 2021.

On Friday, the flagship company of Sarda Group, Sarda Energy & Minerals Limited (SEML), announced in a stock exchange filing that the company’s Subsidiary Joint Venture Company, Natural Resources Energy Pvt. Ltd (NREPL) secured a letter of intent for an iron ore block in Maharashtra. Sarda Energy & Minerals Limited has a 51% economic interest in Natural Resources Energy Pvt. Ltd.

Sarda Energy & Minerals Limited stated in the exchange filing, “We are pleased to inform that Natural Resources Energy Pvt. Ltd. – a Subsidiary Joint Venture Company (NREPL), in which we have 51% economic interest, has been awarded the Letter of Intent for Composite Licence by the Industry, Energy, Labour and Mining Department, Government of Maharashtra, for Surjagad 1 Iron Ore Block in the state of Maharashtra for iron ore for an area of 1,526 hectares.”

This Letter of Intent, which pertains to the Surjagad 1 Iron Ore block, turned out positive for Sarda Energy & Minerals Limited. On March 22, 2024, the share price of Sarda Energy & Minerals Limited opened at ₹206.00, touching the day’s high at ₹225.60, as of 1:26 PM on the NSE.

On March 4, 2024, Sarda Energy & Minerals Limited also announced in an exchange filing that the company had incorporated a Joint Venture subsidiary company ‘Bartunga Coal Private Limited’ on March 2, 2024. The joint venture subsidiary company has been incorporated as a Special Purpose Vehicle to carry out the re-opening, rehabilitation, salvaging, development and operation of Bartunga Hill Coal Mine of South Eastern Coalfields Ltd. Sarda Energy & Minerals Limited holds a 67% stake in Bartunga Coal Private Limited.

About Sarda Energy & Minerals Limited

Sarda Energy & Minerals Limited operates as a vertically integrated steel producer with its own iron ore reserves. The company manufactures and exports specialised manganese-based ferroalloys and generates self-sufficient power from waste heat and coal. Additionally, the company has investments in hydropower projects through Special Purpose Vehicles (SPVs). It is designated as a two-star export house by the Ministry of Commerce & Industry, Government of India.

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.