Monnet Ispat shows a jump up

There is some tremendous amount of volume on the counter of Monnet Ispat. Till now, almost 7 lakh shares have changed hands compared to the two week average of some 2.5 lakh shares. The stock is strongly in the green, up 11% at Rs.72.60, with an intra day high at Rs.74.60.

Volumes have surged up, reacting to the company winning Utkal-C coal bock in Odisha. And this block did not come easy. It had to go through some aggressive bidding, colliding head-on with the likes of Adani Power, DB Power, GMR, JSPL, Lanco, Sesa Sterlite, DB Power. Grapevine has it that the company was the highest bidder at Rs.770/tonne. This is a great win for the company due to the location of the won coal block, which is just 10 kms away from the company’s power plant at Angul, which in turn means very small cost will be incurred on transportation of the coal to the plant, adding to the margins.