GMDC soars 11% in weak market on huge volumes; stock nears 52-week high

GMDC stock hit a high of ₹421.65 in intra-day trade, and has bounced back 86% from its 52-week low of ₹226.20 touched on March 3, 2025.

Gujarat Mineral Development Corporation (GMDC) share price today

 

Shares of Gujarat Mineral Development Corporation moved higher by 11 per cent to ₹421.65 on the BSE in Friday’s intra-day trade amid heavy volumes in an otherwise weak market. 

 

The stock price of the industrial minerals company was trading close to its 52-week high of ₹428 touched on July 1, 2025. It had hit a record high of ₹505 on February 5, 2024. The stock has bounced back 86 per cent from its 52-week low of ₹226.20 hit on March 3, 2025.

 

At 01:34 PM: GMDC was trading 10.9 per cent higher at ₹420.80, as compared to 0.68 per cent decline in the BSE Sensex. The average trading volumes on the counter jumped nearly 10-fold. A combined 13.43 million equity shares changed hands on the NSE and BSE.  CATCH STOCK MARKET LATEST UPDATES TODAY LIVE

 

What’s driving the 86% surge in GMDC's stock price in past three-and-half months?

 

According to media reports, the PMO is likely to hold a key stakeholder meeting on the rare-earth magnet crisis on July 18.

 

The Ministry of Heavy Industries is preparing to roll out a subsidy scheme worth ₹1,345 crore aimed at promoting domestic manufacturing of rare earth magnets, Union Minister HD Kumaraswamy said on July 11, reported news agency PTI. The proposal is currently under inter-ministerial consultation. 

 

A proposed plan by India to spur local production of rare-earth magnets has drawn initial interest from a clutch of large conglomerates; Bloomberg had reported quoting people familiar with the matter, as the country seeks to cut its reliance on China for these vital electric-vehicle and wind-turbine materials. The Indian government is planning an incentive program for private sector firms manufacturing these magnets.

 

Meanwhile, Roopwant Singh, Managing Director, GMDC, while announcing March 2025 quarter results on May 15, 2025 said that FY25 has been a year of steady performance and disciplined operations for GMDC.  The company has remained focused on consistency and efficiency, while also moving ahead with key long-term projects. The progress made in Odisha, particularly in the Baitarani West block, reflects the company’s future-ready approach and commitment to timely execution in line with national energy priorities.

 

Looking ahead, GMDC estimate Capex outlay to the tune of ₹15,000 crore up to FY30, with key investments being ₹7,000 crore towards capacity expansion in Lignite, ₹2,500 crore for launch of Odisha mining operations and ₹4,000 crore towards new business build in Critical minerals space.  ALSO READ | Atul shares slide 4% as Q1 margin contracts; check details here 

Rare-earth elements (REE) are a group of 17 metals typically occurring together in natural geological environments. The suite of rare earths is split into two distinct sub-categories, the Light Rare-earth Elements (LREE) including Scandium (Sc) and the elements between Lanthanum (La) and Gadolinium (Gd), and the Heavy Rare-earth Elements (HREE) including Yttrium (Y) and the elements between Terbium (Eu) and Lutetium (Lu).

 

GMDC in its FY24 annual reports said that the company has been nominated as a prospective lessee for mining of REE & other associated minerals by the Department of Atomic Energy (DAE) Government of India for one of the world’s largest rare earth deposits at Ambadungar, a village in Chhota Udepur district of Gujarat and is in the process of preparation and approval of mining plan.

 

GMDC further said its REE exploration project aims to establish India as a leading global player in this field, benefiting the country's economic and strategic development. The company plans to build a complete REE value chain, from mining to end-product manufacturing.

 

Meanwhile, India is taking a multi-pronged, well-funded, and coordinated approach - with exploration, regulation, state capacity, private participation, recycling, diplomacy - and while the progress is rapid, building a full domestic rare-earth supply chain remains a multi-year journey. Long-term self-reliance is now a national mission, said analysts at InCred Equities.