Shares of Sunflag Iron & Steel hit a fresh high of Rs 160.85, surging 7% on the BSE in heavy intraday trading on Monday. The stock surpassed the previous high of Rs 150.95 on February 20, 2023.

The stock was up 6.5% at Rs 159.60 at 9:52 am, while the S&P BSE Sensex fell 0.85%. The average transaction volume over the counter jumped more than threefold. A total of 2.5 million shares changed hands on the NSE and BSE.

Over the past two sessions, shares in the steel products company have risen 14% after acquiring a more than 10% stake in Lloyds Metals and Energy Ltd (LMEL) amid talk of an optional fully convertible debenture (OFDC).

Sunflag Iron stated that the company had exercised the option to convert 60 million 0% OFCDs issued and allotted by LMEL into 60 million Re 1/- face value shares, that is, the conversion ratio is 1:1.

LMEL, at its board meeting on Thursday, March 16, 2023, converted and distributed the 0% above of the 60 million OFCD shares into 60 million shares, representing 11.89% of LMEL’s total voting share capital, the company said.

Sunflag Iron & Steel manufactures carbon steel, free-cutting steel, semi-free-cutting steel, micro-alloyed steel, stainless steel, spring steel, valve steel, bearing steel, high-quality steel, tool steel and other low-carbon steel and alloy steel products, etc.

The company’s product range includes rolled products, billets/blooms, ingots and bright bars in various shapes and size ranges. These products are mainly used to manufacture automotive transmission gears, drive shafts, steering systems, bearings, exhaust systems and other engine components.

The company also manufactures components for critical applications to Indian Railways, Ordnance Plants, the Power Sector and other general engineering sectors.

Meanwhile, the government has signed agreements with 27 companies to launch the Rs 6,322 crore Specialty Steel Production Linked Incentive (PLI) scheme, expected to attract investments of up to Rs 30,000 crore over the next five years. All Memorandums of Understanding (MoUs) were signed for 57 applications from 27 companies.