Gallantt Ispat zooms on entering into agreement with East Coast Railway
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Gallantt Ispat is currently trading at Rs. 73.35, up by 4.72 points or 6.88% from its previous closing of Rs. 68.63 on the BSE.
The scrip opened at Rs. 67.36 and has touched a high and low of Rs. 75.70 and Rs. 67.36 respectively. So far 54910 shares were traded on the counter.
The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 75.70 on 10-Jul-2023 and a 52 week low of Rs. 46.00 on 23-May-2023.
Last one week high and low of the scrip stood at Rs. 75.70 and Rs. 58.85 respectively. The current market cap of the company is Rs. 1769.80 crore.
The promoters holding in the company stood at 68.75%, while Institutions and Non-Institutions held 0.01% and 31.23% respectively.
Gallantt Ispat has entered into an agreement with East Coast Railway, Bhubaneshwar, Odisha to buy and own Railway Wagons to get rid of wagons shortfall with Indian Railways. Unavailability of rakes (a collection of wagons pulled by an engine) by Indian Railway is a major concern and pet peeve of the Company. Rakes are provided by the Indian Railway on priority by payment of 15% premium on freight charges and even then, availability of railway rakes is very difficult. Availability of railway rakes is more difficult through placing normal indent nowadays and recent past. Hence, company is in the process of acquiring two railway rakes under the General-Purpose Wagon Investment Scheme (GPWIS) of Railway Board.
Thus, Indian Railways offer 10% rebate on railway freight rate for 15 years under the GPWI Scheme. As such, altogether company would be able to save 25% on the freight cost (10% rebate plus 15% on premium indent). The company has decided about owning railway rakes to boost up loading of Iron ore and coal (primary raw materials of the Company) from origin (port, mining area etc.) to its manufacturing facilities. Owning two railway rakes would cost the Company around Rs 55 crore but having own rakes would assure that raw materials are dispatched timely, hassle free and cost effectively.
Gallantt Ispat manufactures Sponge Iron, Mild Steel Billets, Re-Rolled products (TMT bars) and a Modern Roller Flour.
