Why Sunflag Iron Shares Are Surging Today

Shares of Sunflag Iron have jumped over 14% in the past two sessions and jumped over 7% today to hit the stock’s 52-week high of ₹162.55.

What Happened: Shares of the company have been on an uptrend since the company announced acquiring an 11% stake in Lloyds Metals and Energy Limited (LMEL) last week. The iron and steel company announced the acquisition in the after-market hours on Thursday. On Friday, propelled by the announcement the stock jumped up 6.89%.

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The company in a regulatory filing informed that it was allotted six crore 0% Optionally Fully Convertible Debentures (OFDC's) by LMEL last year. The Company has now exercised its option of conversion of the six crore OFCDs into six crore equity shares. The company also said that the conversion and allotment were approved by the LMEL board on March 16. The average price of the shares for this acquisition was ₹204.35

Price Action: Sunflag Iron shares were up 6.61% at ₹159.70 in the early hours of trading on Monday.

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