Orissa Minerals Development surges after govt allots coal block in Odisha

Orissa Minerals Development Company surged 14.29% to Rs 2,341.30 at 14:30 IST on BSE after the company was allotted Brahmani coal block located in Odisha for commercial mining.

The announcement was made during market hours today, 27 July 2016.

Meanwhile, the S&P BSE Sensex was down 16.41 points or 0.06% at 27,960.11.

High volumes were witnessed on the counter. On BSE, 31,828 shares were traded in the counter as against an average daily volume of 3,134 shares in the past one quarter. The stock hit high of Rs 2,429 and low of Rs 2,054.90 so far during the day. The stock had hit a 52-week high of Rs 3,040 on 3 August 2015. The stock had hit a 52-week low of Rs 1,370 on 22 February 2016. The stock had underperformed the market over the past one month till 26 July 2016, rising 0.9% compared with 5.98% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 0.1% as against Sensex's 7.57% rise.

The mid-cap company has equity capital of Rs 0.60 crore. Face value per share is Rs 10.

Orissa Minerals Development Company said that the company received the letter from the Government of India, Ministry of Coal dated 21 July 2016 saying that the Competent Authority has approved allotment of Brahmani coal block located in Odisha to the company for commercial mining. The company had won the block in competitive bidding of coal mines in 2012.

Orissa Minerals Development Company (OMDC) reported net loss of Rs 0.79 crore in Q4 March 2016 compared with net profit of Rs 3.25 crore in Q4 March 2015. Total income dropped 16% to Rs 15.44 crore in Q4 March 2016 over Q4 March 2015.

State-run OMDC was incorporated in the year 1918. Its mines are located around Barbil in Keonjhar District of Odisha. It is one of the oldest iron ore mining companies in India. Eastern Investments Limited, the government's bird company holds 50.02% stake in OMDC (as per the shareholding pattern as on 30 June 2016).

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