LIC-Backed Small Cap Stock Rockets 10% After Important Government Approval

Shares of The Orissa Minerals Development Company which were trailing in the red on Thursday, shot up sharply to hit a new 52-week high of ₹8,342.35.

What Happened: The State Pollution Control Board (SPCB) in Odisha has granted consent to operate the Bagiaburu Iron Ore mines operated by The Orissa Minerals Development Company Limited (OMDC). The consent order dated Dec. 13, allows for producing Iron Ore (ROM) at a rate of 3,60,000 metric tons per annum (TPA).

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The mining activities are permitted in the mine lease area covering 21.52 hectares and situated in Uliburu, Tehsil Barbil, District Keonjhar, Odisha. The consent order comes into effect from the specified date of December 13, 2023.

The stock shot up over 10% as soon as the announcement was made at around 12:05 pm. The announcement helped the LIC-backed stock continue making gains for the second straight session. LIC owns a 6.80% stake in the company.

Price Action: Shares of the company were trading 6.42% higher at ₹8,008 on Thursday afternoon.

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Posted In: EquitiesGovernmentRegulationsMarketsMoversTrading IdeasThe Orissa Minerals Development Company