Monnet Ispat & Energy surged 8.95% to Rs 38.35 at 12:25 IST on BSE, with the stock extending Tuesday's rally triggered by media reports that lenders will discuss debt resolution aspects of the company.
Meanwhile, the S&P BSE Sensex was down 54.67 points or 0.17% at 31,242.86. The S&P BSE Small-Cap index rose 61.48 points or 0.39% at 15,741.20.
On the BSE, 3.52 lakh shares were traded on the counter so far as against the average daily volumes of 1.24 lakh shares in the past one quarter. The stock had hit a high of Rs 39.10 and a low of Rs 36.50 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 20 June 2017, sliding 14.36% compared with the Sensex's 2.73% rise. The stock had also underperformed the market over the past one quarter, advancing 4.14% as against the Sensex's 6.03% rise. The scrip had, however, outperformed the market over the past one year, gaining 45.76% as against the Sensex's 16.49% 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 have rallied 27.4% in two trading sessions from its close of Rs 30.10 on 19 June 2017 on buzz of debt resolution-based developments for the company. The stock surged 16.94% to settle at Rs 35.20 yesterday, 20 June 2017.
As per reports, the company's lenders will send the company's case to National Company Law Tribunal (NCLT). If accepted, the creditors' meeting will be called within 30 days and the lenders are also likely to submit a resolution plan in 180 days, reports indicated.
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A maximum extension of 90 days would be given, failing which the company will go for liquidation, reports suggested.
Earlier, shares of Monnet Ispat & Energy witnessed selling pressure on media reports that the company has filed for bankruptcy.
Shares of Monnet Ispat & Energy had tumbled 21.71% in four consecutive sessions to settle at Rs 30.10 on 19 June 2017, from its closing of Rs 38.45 on 13 June 2017.
Monnet Ispat in a clarification issued to the stock exchanges after market hours on 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.
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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