Ispat Industries hardens

Ispat Industries rose 1.88% to Rs 37.85 at 12:46 IST on BSE on reports of Global Steel Holdings, a stakeholder of the company, signing mining lease agreements in three countries for iron ore and coal.

Meanwhile, BSE Sensex was up 141.07 points or 0.87% to 16,265.01.

On BSE, 86.59 lakh shares were traded in the counter. The scrip had an average daily volume of 17.47 lakh shares in the past one quarter.

The stock hit a high of Rs 40.55 and a low of Rs 37.90 so far during the day. The stock had a 52-week high of Rs 87.40 on 20 December 2007 and a 52-week low of Rs 12.60 on 14 March 2007.

The company’s current equity is Rs 1,222.44 crore. Face value per share is Rs 10.

As per reports, Global Steel would form special purpose vehicles in these three countries, in which Ispat may have a stake.

The reports suggested the lease in Brazil would be for iron ore mines, where reserves are estimated to be more than 0.5 billion tonnes. In Mozambique and Colombia, where the firm signed leases for coal mining, reserves are estimated at 70 million tonnes and about 60 million tonnes, respectively.

Ispat Industries reported net loss of Rs 36 crore in Q3 December 2007 as against net profit of Rs 17.52 crore in Q3 December 2006. Sales rose 18.5% to Rs 2166.23 crore in Q3 December 2007 over Q3 December 2006.

Ispat Industries, promoted by the Mittals group, is into manufacture of all types of galvanized plain/corrugated steel sheets/strips, coils and sponge iron.