Shares of MOIL surged over 15% on Wednesday morning to hit a new 52-week high of ₹265.10.
What Happened: The massive surge today comes as Quant Mutual Fund Gilt Fund bought 11 lakh shares of the company on Wednesday. The acquisition of shares was done through a bulk deal on the NSE at an average price of ₹226.80. The price was around 4% premium over the stock’s Tuesday closing price of ₹218.
The total cost of the deal was around ₹24.94 crore. LIC owns a 7.48% stake in the company. The stock also seems to be ageing strength from the cabinet approval of royalty rates for critical minerals.
The Union Cabinet, led by Prime Minister Narendra Modi, approved royalty rates of 3% each for lithium and niobium and 1% for Rare Earth Elements. The approval paves the way for the central government to conduct the first-ever auctions of lithium, niobium, and rare earth element (REE) blocks in the country. The royalty rate on these minerals holds significant financial significance for potential bidders participating in the mine auction process.
The announcement has cheered up the investors, as several mining companies including NALCO, NMDC and Hindustan Copper were trading in the green on Thursday.
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Price Action: MOIL’s share price was up 12.96% to trade at ₹259.30 on Thursday morning.
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