OSIS: High volumes

STOCKS IN THE NEWS

The stock gained 27 per cent last week and 130 per cent in a month to close at Rs 123.30 on the Bombay Stock Exchange. The total volume at the counter increased over nine-fold, with four lakh equity shares changing hands last week compared with 43,643 shares in the week earlier.

The rise follows Prakausali Investments' acquisition of 6.36 per cent stake in the company. Prakausali is one of the promoters of real estate company Unitech. The board of directors of Orissa Sponge Iron and Steel (OSIS) has proposed to issue 60 lakh equity shares and warrants on a preferential basis.

The company has proposed to issue 15 lakh equity shares and an additional 15 lakh warrants to Prakausali Investments on a preferential basis. The company has also proposed to issue 30 lakh warrants to TRFI Investments, one of the promoters of the company on a preferential basis.

The company manufactures sponge iron through the direct reduction route by using non-coking coal. It has a project consultancy division, which provides technical consultancy and project engineering services to sponge iron plants.