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Monnet Ispat recovers on bargain hunting

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Capital Market
Last Updated : Jun 21 2017 | 12:01 AM IST

Monnet Ispat & Energy surged 8.64% to Rs 32.70 at 10:25 IST on BSE, with the stock recovering from recent slide triggered by media reports that the company has filed for bankruptcy.

Meanwhile, the S&P BSE Sensex was up 63.67 points or 0.2% at 31,375.24. The S&P BSE Small-Cap index rose 74.84 points or 0.48% at 15,728.81.

On the BSE, 1.41 lakh shares were traded on the counter so far as against the average daily volumes of 1.19 lakh shares in the past one quarter. The stock had hit a high of Rs 33.25 and a low of Rs 28.95 so far during the day. The stock had hit a 52-week high of Rs 44.50 on 17 May 2017 and a 52-week low of Rs 19.25 on 9 December 2016.

The stock had underperformed the market over the past one month till 19 June 2017, sliding 26.76% compared with the Sensex's 2.78% rise. The stock had also underperformed the market over the past one quarter, declining 11.99% as against the Sensex's 5.61% rise. The scrip had, however, outperformed the market over the past one year, advancing 28.36% as against the Sensex's 17.6% rise.

The small-cap company has equity capital of Rs 200.77 crore. Face value per share is Rs 10.

Shares of Monnet Ispat & Energy had tanked 21.71% in the preceding four trading sessions to settle at Rs 30.10 yesterday, 19 June 2017, from its closing of Rs 38.45 on 13 June 2017 on media reports that the company has filed for bankruptcy.

Meanwhile, Monnet Ispat in a clarification issued to the stock exchanges after market hours on Friday, 16 June 2017 with regard to aforesaid media reports said that it has not filed for bankruptcy. The reference of Monnet Ispat & Energy in the article is with reference to Gupta Coal, which has filed for bankruptcy and also supplied coal to Monnet Ispat & Energy at some point of time, the company said.

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Therefore, the provisions of Regulation 30 of Listing Regulations, 2015 do not apply on the company, with respect to the aforesaid news item, Monnet Ispat said.

Monnet Ispat & Energy reported net loss of Rs 459.52 crore in Q4 March 2017, higher than net loss of Rs 438.65 crore in Q4 March 2016. Net sales declined 6.7% to Rs 348.27 crore in Q4 March 2017 over Q4 March 2016.

Monnet Ispat & Energy operates in two segments viz. power and steel.

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First Published: Jun 20 2017 | 10:27 AM IST

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