Monnet Ispat Surges on Plans to Sell Stake in Power Unit

Shares of Monnet Ispat surged over 13 per cent to Rs 74.6 after the company's management indicated that it plans to sell stake in power generation subsidiary to fuel expansion plans.

Monnet Ispat, which holds 87.5 per cent stake in Monnet Power, is currently engaged in preliminary discussions with five-six power utilities, including a foreign firm, for strategic stake sale. "We are looking for a strategic partner in Monnet Power. Five-six companies have evinced interest. One of them is a foreign firm. We are yet to decide on the percentage of stake dilution," CMD Sandeep Jajodia told PTI.

Also boosting the sentiment in Monnet Ispat, its power subsidiary bagged the Utkal C mine in Odisha on Monday for an estimated Rs 9,540 crore, with a bid of Rs 770 a tonne. Utkal C has an extractable reserve of 123.86 million tonnes (MT). It was previously allotted to Utkal Coal Ltd.

Monnet Power is setting up a 1,050 MW coal-based power plant at Angul in Odisha. It also plans to add 660 MW at the same site.

At 10:28 a.m., Monnet Ispat shares were up 10.5 per cent at Rs 72.55, outperforming Nifty which was trading flat. (With PTI inputs)