ArcelorMittal, the world's largest steelmaker, is reportedly eyeing a stake in Ramsarup Industries sending the Kolkata-based steel and wire producer's stock to jump to almost the highest in three years.
The shares of the company soared by 11 per cent to Rs81 at the close of today's closing although it had risen by 19 per cent in intra-day trading. As of 31 March, promoters of the company hold 75.9 per cent of the company stock.
Citing sources from within the company Business Standard reported today that Ramsarup was in discussion with global companies, including ArcelorMittal, for a strategic stake in the company.
Ramsarup's main business is manufacturing wires and thermo-mechanically treated bars. It operates in three segments: wires and steel products, infrastructure and WTG power.
It also undertakes laying of power transmission lines, infrastructure contracts and generation of power. The company serves railways, housing, power, roads and bridges, water management and defence sectors.
But what interests the Luxembourg-based steel maker in Ramsarup are the company's two iron ore mines in Orissa that have reserves of 7.1 million tonnes and 45 million tonnes respectively.