Ashapura Minechem surges as its step-down arm signs contracts for supply of Bauxite and Iron Ore from Guinea
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Ashapura Minechem is currently trading at Rs. 338.00, up by 12.50 points or 3.84% from its previous closing of Rs. 325.50 on the BSE.
The scrip opened at Rs. 329.95 and has touched a high and low of Rs. 338.00 and Rs. 323.65 respectively. So far 42525 shares were traded on the counter.
The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 329.95 on 18-Sep-2023 and a 52 week low of Rs. 72.70 on 23-Dec-2022.
Last one week high and low of the scrip stood at Rs. 339.00 and Rs. 256.75 respectively. The current market cap of the company is Rs. 3046.49 crore.
The promoters holding in the company stood at 45.33%, while Institutions and Non-Institutions held 17.24% and 37.43% respectively.
Ashapura Minechem’s step-down subsidiary -- Ashapura Holdings (UAE) FZE has concluded and signed 2 contracts for the supply of Bauxite from Guinea and Ashapura Guinea Resources SARL (a step-down subsidiary of Ashapura Minechem) concluded and signed a contract for the supply of Iron Ore from Guinea.
The two contracts for supply of 24 million tons of Bauxite from Guinea were signed with a subsidiary of the Chinese aluminium major, State Power Investment Corp (SPIC); the first contract, a 3 million tons per annum supply contract for 3 years and the second contract, a 3 million tons per annum supply contract for 5 years. SPIC, a Fortune Global 500 company, is one of China’s largest state-owned conglomerates having total assets of $112 billion integrated over nuclear power, thermal power, coal, aluminum, logistics, finance, environmental protection and high-tech industries.
The contract to supply 10 million tons of Iron Ore was signed with Tai He Mining, whereby 2 million tons per annum of Iron Ore will be supplied for 5 years. Tai He Mining is a Chinese Iron Ore major with the latest technology to upgrade & process Iron Ore. These contracts offer Ashapura the opportunity to set-aside a part of its production from Guinea towards stable long-term commitments.
Ashapura Minechem is the mine owner and exporter of bentonite. The company also has business interests in iron ore, bleaching clay, kaolin and barites. They have also recently diversified into bauxite.
