Heard on the Street

Sesa Goa takeover of mines boosts Dempo

Sesa Goa's acquisition of Dempo's mining assets for Rs 1,750 crore has livened up activity in the shares of Dempo group company Goa Carbon. The stock rose 5% to Rs 89.40 on hopes that Dempo would use a portion of the mining sale proceeds to invest in Goa Carbon.

According to dealers, domestic funds and some insurance companies have been buying shares of the company in sizeable quantities. If media reports are any indication, Goa Carbon has lined up an investment of Rs 700 crore to set up a Calcium Petroleum Coke (CPC) manufacturing plant, augment capacity by 1 lakh tonnes to 2.25 lakh tonnes at its Paradip unit in Orissa and venture into co-power generation of 18 MW at its three units in Bilaspur, Paradip and Goa. The stock has appreciated 21% over the past one week.

(Contributed by Shailesh Menon)