Monnet Ispat & Energy jumps ahead of special committee meeting

Monnet Ispat & Energy rose 5.61% to Rs 35.75 at 9:36 IST on BSE ahead of the meeting of a special committee today, 31 December 2015, to consider conversion of loan into equity shares.

The announcement was made after market hours yesterday, 30 December 2015.

Meanwhile, the BSE Sensex was up 4.78 points, or 0.02%, to 25,964.81.

On BSE, so far 1.87 lakh shares were traded in the counter, compared with an average volume of 56,533 shares in the past one quarter.

The stock hit a high of Rs 36.95 and a low of Rs 35.50 so far during the day. The stock hit a 52-week high of Rs 74.60 on 10 March 2015. The stock hit a 52-week low of Rs 26 on 25 August 2015.

The stock had underperformed the market over the past one month till 30 December 2015, sliding 4.92% compared with 0.71% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 8.88% as against Sensex's 0.74% fall.

The small-cap company has an equity capital of Rs 65.83 crore. Face value per share is Rs 10.

Monnet Ispat & Energy said that a meeting of allotment committee is proposed to be held on 31 December 2015 to consider conversion of loan into equity shares pursuant to invocation of Strategic Debt Restructuring (SDR) scheme by joint lenders forum. The board will also consider conversion of loan into equity shares in terms of decision of joint lenders forum as a part of corrective action plan.

Monnet Ispat & Energy reported net loss of Rs 394.71 crore in Q2 September 2015 as against net loss of Rs 78.16 crore in Q2 September 2014. Net sales declined 39.10% to Rs 501.91 crore in Q2 September 2015 over Q2 September 2014.

Monnet Ispat & Energy's business portfolio encompasses manufacturing and marketing of sponge iron, steel and ferro alloys. MIEL is also engaged in mining of minerals like coal & iron ore, besides generation of power for captive consumption.

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