Gujarat NRE hits the roof

Gujarat NRE Coke hit the 20% upper circuit today at Rs.3.76 with over 11 times surge in volumes at 23 lakh shares traded today morning compared to two-week average of around 3 lakh shares.

The stock hit the roof, reacting to news that it has got the shareholders nod to sell 62 of its wind mills in Gujarat for a total wind power energy production capacity of 87.5 mw.  

The company has been successful in inking agreements for the sale of the entire wind mill business for Rs 219 crore. The company will be using the proceeds of this sale to pump in back into the company and improve its cash flows and thereby helping faster revival of its operations.

The company has been consistently posting losses for several quarters now and it ended Q1FY16 too with a net loss of Rs.56 crore.