Vedanta Shares Continue To Gain After Company Gets Closer To Securing Government Tender

Shares of Vedanta continued their uptrend on Friday as the company announced emerging as the ‘preferred bidder' for another state government contract this week.

What Happened: The mining giant on Thursday informed that the Chattisgarh government in a notice declared the company as the ‘preferred bidder' in an e-auction for granting a composite license. The government in October had invited tenders for an electronic auction for the grant of Composite License in respect of Nickel, Chromium, and Associated Platinum Group Elements Block in Chhattisgarh.

A composite license means the prospecting licence-cum-mining lease, which essentially means that the company can carry out exploration operations followed by mining operations. 

See Also: ONGC Shares Shoot Up 4%, Fueled By This Government Tax Cut

The company added that the grant of the license will be subject to making necessary payments, completion of other terms and conditions of the Tender Document, and other formalities. 

Earlier on Wednesday, the company said that it was declared as a preferred bidder for the Sijimali Bauxite Block, located in the Rayagada and Kalahandi districts of Odisha. 

"The block is a strategic fit for Vedanta given its size, location, and bauxite quality. The block has estimated reserves of 311 million tonnes of bauxite," the company said in a regulatory filing. 

Price Action: Shares of Vedanta were up 0.67% to trade at ₹316.50 as the markets opened on Friday.

Read Next: Why PNC Infratech Analyst Sees 25% Upside Despite Q3 Earnings Miss

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: government contractsmineralsminingmining stocksVedanta