GOCL Corp locked at 20% upper limit as arm bags Rs 592 cr Coal India order

IDL Explosives, a wholly-owned subsidiary of the Company, has bagged order worth of Rs 592.45 crore from Coal India, for supply of bulk explosives, to be supplied over a period of 2 years.

Shares of GOCL Corporation (formerly Gulf Oil Corporation) were locked at the 20 per cent upper circuit at Rs 328.50, also its 52-week high on the BSE on Monday, after the company announced order win worth of Rs 592 crore from Coal India.

IDL Explosives Limited (IDLEL), a wholly-owned subsidiary of the company, bagged order worth of Rs 592.45 crore from Coal India, a Government of India undertaking for supply of bulk explosives, to be supplied over a period of 2 years i.e. from October 2021 to October 2023, GOCL Corporation said in an exchange filing.

The trading volume at the counter jumped nearly five-fold with a combined 895,000 equity shares changing hands till 12:50 pm. There were pending buy orders for around 92,000 shares on the NSE and BSE, data shows.

GOCL Corporation is engaged in manufacture of energetics, industrial / commercial explosives and realty businesses and dealing with PSU companies. A wholly-owned subsidiary of GOCL, IDL Explosives, is a pioneer in the manufacturing and marketing of cartridge explosives and bulk explosives for mining and infrastructure projects. With a large 1,25,000 MT licensed capacity, the company manufactures cartridges in its Rourkela plant and bulk explosives at its plants in Dhanbad, Korba, Ramagundem, Rajarappa, Singrauli, and Udaipur and has a total licensed capacity of 2,63,500 tonnes.

The energetics division of the company and its 100 per cent subsidiary IDLEL has undertaken many projects for upgradation and modification of processes and equipment for enhancing quality, productivity, safety and efficiency to deliver value-added products and services. To meet the increasing competition new products and further modernization of facilities are planned in FY22.

The government has initiated strict measures to enhance the security of detonators and explosives and as an immediate step curtailed the production of electric detonators to force a shift towards non-electric and secure electronic detonators over 5 years starting from April 2020, GOCL Corporation said in FY21 annual report.