Monnet Ispat back in favour

There is a lot of activity on the counter of Monnet Ispat for the past couple of days, as though in anticipation of some big news. And big news it was indeed.

Though the company has not issued any official statement to the exchanges, news has come in that Monnet has bagged one coal block in Chhattisgarh. It was supposedly the highest bidder at Rs.2619 per tonne for the Gare Palma IV/7 coal mine. It managed to bag this block on the penultimate day of the first phase of coal auction, which ended today.

The company has lost its earlier allocated mine following the Supreme Court’s deallocation order in September. And this attempt to get the mine back proved successful , auguring well for the company in the long run though it currently faces some tight liquidity crunch as it is servicing a very high level of debt of around Rs.6000 crore.

The stock is currently up almost 11.5% at Rs.62.45 with some 2.28 lakh shares getting traded on the counter.