Raipur Alloys surges on block deal

DALAL STREET SPIKES

Raipur Alloys & Steel gained 20 per cent to Rs 122.70, as Reliance Mutual Fund has acquired 12.5 lakh shares at Rs 100.47 per share, vide block deals, on Wednesday.

In September, the company announced the merger of Chhattisgarh Electricity Co (CECL) and Raipur Gases (RGPL) with itself to gain benefits from integration of operations. But this merger would lead to a large equity dilution.

Raipur Alloys' equity capital will rise to Rs 29.57 crore from the current Rs 13.08 crore. Raipur Alloys & Steel makes sponge iron and steel ingots. CECL has a thermal power plant of 50 mw and ferro alloys plant having five furnaces of 9 MVA each. It makes manganese-based ferro alloys.

Currently, Raipur Alloys supplies waste heatteam to CECL and buys ferro alloys & power from CECL. CECL has also been allotted a captive coal mine.