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Our bureau

Kolkata, Oct. 1 Adhunik Metaliks’ stock on Wednesday spurted 18.46 per cent on the NSE and 15.43 per cent on the BSE, gaining a position among the top movers on both exchanges.

The BSE 500 and Midcap indices component clocked a combined traded quantity of over 10 lakh shares on the two exchanges.

It was a decent recovery after a sharp fall in the past one month.

ABN Amro Bank London branch on July 30 sold off 6.43 lakh shares, more than a third of it holding, for Rs 111.83. Clearwater Capital Partners, however, had picked up almost the entire quantity. On September 18, Morgan Stanley unloaded 6.06 lakh shares at Rs 69.51. Deutsche Securities bought around 6.5 lakh shares. The stock on Wednesday finished at Rs 67.

According to market sources, a few holders of a large quantity of participatory notes issued by Morgan Stanley have offloaded their indirect investment in the stock recently.

According to analysts, the recovery in the stock was largely because of its initiatives in the mining and expansion plans.

At the end of the June quarter, Morgan Stanley held around 3.03 per cent of the company’s paid up capital, while ABN Amro held 2.56 per cent.

Its wholly-owned subsidiary, Orissa Manganese & Minerals Ltd, has already obtained approval for iron ore mining on 141.147 hectare of forestland at Ghathuri in Jharkhand. It is likely to start extraction early next year.

It also has 90 million tonnes of iron ore deposits in its other mining rights area in Orissa. This mine is partly used of captive consumption and partly for merchant mining.

According to Mr Rajesh Agarwal of CD Equisearch, Adhunik’s auto-grade steel and iron ore revenues continued to generate healthy cash flows, part of which would be utilised in the expansion projects.

Demand for steel products and price realisation, including that of ore, has steadily been growing.

It has embarked on the third phase expansion of steel capacity to 1 million tonnes an annum from the current 45 lakh tonnes an annum.

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