Shares of MMTC surged over 18 per cent today after the government approved renewal of agreement for supplying up to 16.5 million tonnes (MT) of high grade iron ore to steel plants in Japan and South Korea over three years till March 2018.
The stock zoomed 18.04 per cent to settle at Rs 54.30 on the BSE. During the day, it soared 20 per cent to Rs 55.20.
At the NSE, shares of MMTC rallied 18.17 per cent to end at Rs 54.30.
Following the sharp rise in the stock, the company’s market value rose by Rs 830 crore to Rs 5,430 crore.
On the volume front, 27.83 lakh shares of the company changed hands at the BSE and over one crore shares were traded at NSE during the day.
The quantities covered under the agreement will be in the range of 3.8 MT to 5.5 MT per year and will be supplied primarily from the mines of the National Mineral Development Corporation (NMDC), an official statement said yesterday.
“The contract will be executed by the Metals and Minerals Trading Corporation of India Limited (MMTC) under the Department of Commerce,” it added.
India has been supplying high grade iron ore to Japan and South Korea under Long Term Agreements for the last four to five decades, the statement said.
Meanwhile, in the broader market, the BSE Sensex ended at 27,895.97, up 166.30 points.