Small Cap Stock: Ashapura Minechem Limited on Friday, January 17, announced that its overseas subsidiary has entered into a long-term Memorandum of Understanding (MOU) with China Railway, a Fortune 500 company, to jointly develop a Fako bauxite deposit project in Guinea in West Africa.
“We wish to inform you that the company’s overseas subsidiary has entered into a long-term Memorandum of Understanding (MOU) with China Railway, a global Fortune 500 company, to jointly develop its Fako bauxite deposit in the Kindia region of Guinea,” said the company in an exchange filing.
Ashapura Minechem-China Railway Deal
According to the details of the deal, China Railway will be responsible for the production of bauxite and provide logistical solutions, while Ashapura will be responsible for the sales and marketing department.
Ashapura will also be responsible for providing technical support, including quality assurance, according to the BSE filing.
“In terms of MOU, China Railway will be responsible for production of Bauxite and provide logistic solution while Ashapura will be totally responsible for sales and marketing and providing technical support including quality assurance for the project,” said the company.
The company aims to transform one of Guinea’s most underdeveloped regions by creating job opportunities along with increasing production capabilities to drive growth.
“The abovementioned project may set to transform one of Guinea’s most underdeveloped regions by creating job opportunities. It will also boost the company’s production capacity while driving economic growth and improving the lives of local communities in the Fako region,” it said.
Ashapura Minechem share price
Ashapura Minechem Ltd shares gained 9.99 per cent to close at ₹519.65 in Friday’s trading session, compared to ₹472.45 at the previous stock market close. The company announced the details of the deal after stock market operating hours on Friday.
Its shares hit a 52-week high of ₹519.65 on January 17 after trading 10 per cent above the price band. The stock witnessed its 52-week low level of ₹199.95 on December 29, 2024, according to BSE data.
Ashapura Minechem shares have given a 1,403.91 per cent return in the last five years. As of January 17, the market capitalisation of the company stands at ₹4,964.01 crore.
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