Maithan Alloys plummets 11% as firm shuts Kalyaneshwari plant

NEW DELHI: Shares of Maithan Alloys fell over 11 per cent in Wednesday's trade after the company told the stock exchanges that the production at the Kalyaneshwari Plant has been cut by 15 per cent with effect from October 31, due to adverse market conditions.

The company said between July and October 2016, the cost of imported manganese ore, which accounts for major cost of production, has increased 200 per cent.

Besides, cost of imported coke has gone up by 80 per cent. This is against only 30 per cent increase in sale price of silico manganese, the finished product, the company said.

Following the development, the stock plummeted 11.09 per cent to hit a low of Rs 287 on BSE. "Production at the plant is likely to fall further in the near future," the company said.