Tata Metaliks has surged 12.5% to Rs 72.25, extending its Wednesday’s 19% rally, on the back of huge volumes.
The trading volumes on the counter jumped over 13-times today. As many as a combined 871,302 shares have already changed hands on the counter till 1000 hours, against an average around 63,000 shares that were traded daily in past ten trading days on the NSE and BSE. The stock rallied 42% in past three trading sessions.
Pig iron maker and a part of Tata Steel, in September 2011, entered into a business transfer agreement to hive off its Redi unit in Maharashtra for Rs 180 crore plus net working capital as on the date of transfer. The company has already got shareholders nod for hiving off its Redi unit.
The Redi unit is the largest facility of Tata Metaliks and has an annual pig iron manufacturing capacity of 300,000 tonnes. The company had earlier said that proceeds from the divestment would be utilized for reshaping the balance sheet and future strategic investment.