Dolly Khanna picks stake in this small-cap metal stock in Q3; shares rally nearly 5%

Shares of small-cap metal company Indian Metals & Ferro Alloys surged nearly 5% in early morning trade on Monday, January 6, after ace investor Dolly Khanna’s name appeared in the December quarter (Q3) shareholder pattern.

According to the latest shareholding pattern update, Khanna picked up 6,23,464 shares of Indian Metals & Ferro Alloys, representing a 1.16% stake in the company. According to the shareholding pattern for the September quarter (Q2), Dolly Khanna did not hold a stake in the small-cap stock, or her shareholding was below 1%.

As per SEBI’s norms, companies are required to release the names of shareholders who hold at least 1% or more stake in the company.

Apart from Dolly Khanna, another marquee investor, Mukul Mahavir Agrawal, also holds a stake in the company. His shareholding declined slightly from 6,00,000 shares in the September quarter to 5,99,128 in the December quarter.

During Q3, foreign portfolio investors (FIIs) also raised their stake in Indian Metals & Ferro Alloys from 3.10% to 4.03%. However, domestic institutional investors slightly lowered their stakes to 0.82% in Q3 from 0.92% in Q2.

Another Dolly Khanna portfolio stock Chennai Petroleum released its December quarter shareholding pattern, which showed the well-tracked investor maintained her stake in the company. She held 16,18,520 shares, representing a 1.09% stake in the company, shows data on BSE.

Stock Impact

Following this development, Indian Metals & Ferro Alloys share price surged 4.6% to ₹942.85 in trade today.

The small-cap stock opened at ₹935, as against its previous close of ₹901.30 and later extended gains to the day’s high of ₹942.85 on the BSE.

Indian Metals & Ferro Alloys share price has surged 84% in the last one year. The company has a market capitalisation of nearly ₹5,000 crore and is part of the BSE Smallcap index.

It is a producer of value-added ferro chrome with 190 MVA installed furnace capacity backed up by 204.55 MW captive power generation capacity and extensive chrome ore mining tracts.

The company caters to several marquee customers like Jindal Stainless, Shah Alloys, POSCO, Marubeni Corporation and Nisshin Steel among others.