The Hindu Business Line : Rishabh Digha Steel sees huge volumes

The stock on Wednesday clocked a traded quantity of over 1.33 lakh shares and its fortnightly average on the BSE stands at around 6.10 lakh shares. The stock price has also been firming up. In the last one week, it has gained 7.31 per cent.

The stock closed today at Rs 25.70. In the last one month, it has moved by around 20.1 per cent.

According to market sources, the company, which is into steel processing (finishing and cutting HR and CR coils), is looking for acquisition of an unlisted unit located in Maharashtra and involved in the same business.

Sources close to the management confirming this, said negotiations were on with a few such private players. The company is also understood to be planning preferential allotment of 25 lakh equity shares of Rs 10 at a premium of around Rs 20 per share.

The company is also increasing its processing capacity to 18,000 tonnes per month from the current 12,000 tonnes per month at its Taloja plant in Maharashtra.

Mr Ashok M. Mehta, Managing Director, told Business Line that the company would also upgrade its processing facility in terms of quality and handling of greater range of coils with varying thickness.

The debt-free and profit-making company is expected to recommend first interim dividend of 10 per cent on January 21 on improvement in the profits.

For the 2004-05, it paid a 10-per cent dividend. In the September quarter of 2005-06, the EPS went up Rs 1.02 from 31 paise in the June quarter.