Ashapura Minechem hits 52-week high in a volatile trading session; details inside

At 11 am, the shares of Ashapura Minechem were trading at Rs 333, up by 2.30% from its previous closing of Rs 325.50 on the BSE.

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 the 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 USD 112 billion integrated over nuclear power, thermal power, coal, aluminium, 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.

Incorporated in 1982, 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.

On Monday, the stock opened at Rs 329.95 and touched a high and low of Rs 339 and Rs 323.65, respectively. The BSE group ‘B’ stock of face value of Rs 2 has touched a 52-week high and low of Rs 339 and Rs 72.70, respectively.

Last one week high and low of the scrip stood at Rs 339 and Rs 256.75, respectively. The current market cap of the company is Rs 3,003.03 crore. The promoters holding in the company stood at 45.33%, while Institutions and Non-Institutions held 17.24% and 37.43% respectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.