Expansion talk buoys Ferro Alloy

Shares of Ferro Alloys have been gaining ground on the bourses on talk of the company having embarked on a major expansion plan to the tune of Rs 2,500 crore.

The company is setting up a 250 MW coal-based independent power plant, according to sources. When contacted, a company spokesperson confirmed the development. The expansion plan also includes setting up a 0.5-million tonne stainless steel plant.

This plant is a step forward for the company’s integration moves. Ferro Alloys already has a joint venture with a UK-based company for exploration of platinum.

In the joint venture, the UK firm holds 55% and Ferro Alloy the rest. Ferro Alloys scrip has risen 65% in the past month and 12% in the last week, but ended weak on Thursday.