Adhunik Metaliks shines bright

As against 18,000 shares being traded over a two-week average, Adhunik Metaliks has shown a volume of 3.71 lakh shares till afternoon trade, a 21 times surge. The stock price had breached the upper circuit at Rs.21.90 and it is currently at Rs.19.40, up almost 8%.

This movement in the stock is on unconfirmed news reports that Adani Power is likely to takeover Adhunik Power, a group company. Valuations are hovering around Rs.3500-4000 crore and Adhunik Metaliks hopes to use these funds to retire part of its debt.

The promoters of the company had announced in late November 2014 itself that it has decided to go in for restructuring debt as the company and its subsidiary's businesses were impacted due to the closure of iron and manganese ore mines and scarcity of coal. Thus it had already worked on a corrective action plan to restructure its debt.