Hindalco gains after PMO statement on coal blocks allocation

Hindalco Industries rose 3.57% to Rs 118.80 at 11:15 IST on BSE after Prime Minister Manmohan Singh's office said he is satisfied with the outcome of the process of allocating coal blocks to certain companies.

Meanwhile, the BSE Sensex was down 5.64 points, or 0.03%, to 20,877.25.

On BSE, 6.78 lakh shares were traded in the counter compared with average volume of 12.90 lakh shares in the past one quarter.

The stock hit a high of Rs 119.60 and a low of Rs 114.50 so far during the day. The stock hit a 52-week high of Rs 137 on 2 January 2013. The stock hit a 52-week low of Rs 83.05 on 7 August 2013.

The stock was unchanged over the past one month till 18 October 2013, compared with the Sensex's 4.61% rise in the same period. The scrip had, however, outperformed the market in past one quarter, rising 9.92% as against Sensex's 3.75% rise.

The large-cap company has an equity capital of Rs 206.46 crore. Face value per share is Re 1.

The Prime Minister's Office (PMO) on Saturday, 19 October 2013, said that the Prime Minister is satisfied that the final decision of allocation of Talabira-II and III coal blocks in Odisha to Mahanadi Coalfields, Neyveli Lignite Corporation and Hindalco Industries was entirely appropriate and is based on the merits of the case placed before him. The PMO said that the final decision on the Talabira coal block allocation differed from the earlier recommendation of the Screening Committee, and this was done following a representation received in the Prime Minister's Office from one of the parties, which was referred to the Ministry of Coal.

Hindalco, last week, claimed that the company had followed every process required for allocation of coal completely as stipulated by the government policy. The company issued the statement after the Central Bureau of Investigation (CBI) on 15 October 2013 named Aditya Birla Group Chairman Kumar Mangalam Birla in its 14th FIR in the coal block allocation case. CBI also filed FIRs against Nalco, Hindalco and former coal secretary PC Parakh.

Hindalco Industries will unveil Q2 September 2013 results on 12 November 2013. The company's net profit rose 11.6% to Rs 474.09 crore on 3.3% decline in net sales to Rs 5766.69 crore in Q1 June 2013 over Q1 June 2012.

Hindalco Industries is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world's largest custom smelter at a single location.

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