The shares of Gujarat Mineral Development Corporation (GMDC) shares jumped more than 7 percent on October 9. This comes after Moneycontrol reported that the Indian government is working on a first of its kind scheme worth Rs 7,300 crore for setting up rare earth magnet processing units and supply chains in the country.
The shares of the company were trading at Rs 631.40 apiece, as seen at 3.10 pm.
About govt's Rs 7,300 crore scheme:
The Finance Ministry's expenditure finance committee (EFC) has approved the scheme, according to government officials familiar with the development. It will soon be placed before the Union Cabinet headed by Prime Minister Narendra Modi. The proposal has earmarked Rs 6,500 crore for capital expenditure and Rs 800 crore for operational expenditure.
This comes as the government aims to reduce dependence on China after the world’s dominant supplier imposed export restrictions in April this year on seven rare earth elements and finished magnets. Under the revised rules, Chinese exporters must secure licences and submit end-use declarations confirming materials won’t be used in defence or re-exported to the US.
China to add more rare earth elements to export control list:
Notably, China on Thursday said that it will add several new rare earth elements to its export control list. The elements holmium, erbium, thulium, europium and ytterbium and related materials would be added to the existing control list, the ministry of commerce said in a statement.
GMDC share price history:
GMDC shares gained more than 1 percent in the past five days, and nearly 20 percent in the past one month. The stock has more than doubled in the past six months rallying nearly 134 percent. The stock is so far up around 94 percent in 2025 so far.
The stock’s P/E ratio currently stands at around 28. It sees heavy trading volumes today, with nearly 131 lakh shares already being traded during the day. This is nearly two times that of its 10-day average volumes.
(With inputs from Reuters)
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Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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