Mundra Port and SEZ Bounces today by 20% After Supreme Court’s Result
I was happy to see my profit shooting up by 20% in this stock. Could you imagine, just yesterday I was thinking that I had seen Rs 1300 for this stock when the IPO was out and I could have sold it off for almost 200% profit then. But I did not do it, market collapsed and till yesterday the stock was at Rs. 470 against my IPO price of Rs. 440.
Mundra Port broke the upper circuit today after the Supreme Court of India has allowed the promoter group to continue the construction at Mundra special economic zone. That news shot this stock up to Rs. 550 within last an hour of trading.
No surprise, there are no sellers of this stock in market when it was closed!
The stock had a 52-week high of Rs 1324 on 2 January 2008 and a 52-week low of Rs 388.15 on 2 July 2008.
So what was the court case about?
The Adani’s, promoters of Mundra Port & Special Economic Zone (MPSEZ) on Monday, 7 July 2008 reportedly moved the Apex Court seeking lifting of the prohibition of an ex-parte order it passed on 2 July 2008 staying Adani Group’s Rs 7,400 crore, multi-product special economic zone in Gujarat. The Apex Court’s stay comes in the wake of fishermen from the area filing a public interest litigation (PIL) on grounds of environmental concerns maintaining that the construction activity would be dangerous for the ecologically fragile area, and rob the fishermen of their livelihood. The petition stated that the mangrove in the region has been damaged by the promoters for setting up the industrial zone in the SEZ.
Mundra SEZ, established under the SEZ Act of 2005, is proposed to come up in about 6,000 acres of land with a total investment of Rs 7,400 crore. Land acquisition for the SEZ is currently under progress with nearly 10,000 hectares acquired so far. The multi-product SEZ, when complete, would be spread over a planned area of nearly 32,000 hectares with the Adanis providing infrastructural facilities to the industries setting up units in the SEZ.
The company is engaged in providing port services for bulk cargo, container cargo, crude oil cargo and value- added port services, including railway services. It also generates income from land related and infrastructure activities.
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