Sesa Goa drops after 5-day 10% rally

The company made the announcement after market hours on Thursday, 20 December 2012.

Meanwhile, the BSE Sensex was down 132.16 points or 0.68% at 19,321.76.

On BSE, 2.42 lakh shares were traded in the counter as against average daily volume of 2.74 lakh shares in the past one quarter.

The stock hit a high of Rs 201.35 and a low of Rs 195.60 so far during the day.

The large-cap company has equity capital of Rs 86.91 crore. Face value per share is Re 1.

Shares of Sesa Goa had rallied 10.04% in five trading sessions to settle at Rs 199.35 on Thursday, 20 December 2012, from a recent low of Rs 181.15 on 13 December 2012.

 

Sesa Goa announced after market hours on Thursday, 20 December 2012, that it has acquired the remaining 49% of the outstanding common shares of Western Cluster (WCL) from Elenilto Minerals & Mining LLC, Delaware, for a cash consideration of $33.5 million. Post this transaction, WCL has become a wholly-owned subsidiary of Sesa Goa.

WCL is a logical and strategic fit with Sesa's existing iron ore business and is expected to create significant long term value for all stakeholders, Sesa Goa said in a statement. At WCL, exploration activities are progressing well, with over 42,000 meters of drilling completed till 30 November 2012. The project is on track for first shipment in FY 2014, Sesa Goa said.

Sesa Goa's consolidated net profit jumped 40684.4% to Rs 522.04 crore on 63.2% decline in net sales to Rs 288.49 crore in Q2 September 2012 over Q2 September 2011.

Sesa Goa is India's largest producer and exporter of iron ore in the private sector with operations in Goa and Karnataka and a large integrated project site in Liberia, West Africa. It is a subsidiary of Vedanta Resources plc, the London listed FTSE 100 global diversified natural resources major. For about six decades, Sesa has been involved in iron ore exploration, mining, beneficiation and exports. Sesa also manufactures pig iron and metallurgical coke, with a 0.56 mtpa metallurgical coke plant and a 0.625 mtpa pig iron plant in Goa, and an associated 60 MW power plant.

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