Shyam Metalics shares gain 4% as JV wins LOI for iron ore block

Shares of Shyam Metalics and Energy Ltd rose 4% on Wednesday after the firm said it has received a Letter of Intent from Maharashtra government for composite licence for iron ore block by its joint venture company, namely Natural Resources Energy Private Limited (NREPL).

Shyam Metalics stock gained 3.85% to Rs 622.95 against the previous close of Rs 599.85 on BSE.

The metal stock has gained 129.15% in one year and lost 5.58% since the beginning of this year.  Market cap of the firm rose to Rs 16,918 crore. The stock opened higher at Rs 616.70 on BSE. Total 0.68 lakh shares changed hands amounting to a turnover of Rs 4.15 crore on BSE.   

In terms of technicals, the relative strength index (RSI) of Shyam Metalics stands at 45.9, indicating the stock is trading neither in the overbought nor in the oversold zone. The stock has a one-year beta of 0.7, indicating low volatility during the period. 

Shyam Metalics stock is trading higher than the 5 day. 10day, 100 day, 200 day and lower than the 20 day, 30 day and 50 day moving averages.  

“Shyam Metalics is pleased to inform the receiving of the Letter of Intent from the Industry, Energy, Labour, and Mining Department, Government of Maharashtra, in respect of receiving of the Letter of Intent for Composite License for Iron Ore Block in the State of Maharashtra by its Joint Venture Company, namely Natural Resources Energy Private Limited (NREPL), wherein Dorite Tracon Private Limited, a promoter company of Shyam Metalics and Energy Limited, holds 49% of the of the economic interest. The said Composite Licence for Surjagad 1 Iron Ore Block for Iron Ore in Angudra, Ramunkal Meta, Puske Meta, Negal Meta village, Etapalli Taluka, Gadchiroli District is spread over an area of 1526 hectares. This significant achievement follows NREPL's successful bid in the e-auction process conducted for the said mineral block. As the ‘Preferred Bidder’ under the established Auction Rules, NREPL submitted a final price offer of 126.35%, demonstrating its commitment to the project's value,” said Shyam Metalics.

Shyam Metalics and Energy Ltd is a metal producing company. It is engaged in the business of manufacturing and selling of ferro alloys, iron and steel, products and power generation. Its product portfolio includes iron pellets, sponge iron, billets, thermo-mechanically treated (TMT) bars, structural steel, wire rods, power, ferro alloys, and aluminum.