The newly listed SME stock Owais Metals & Mineral Processing is buzzing on bourses after the company announced that it has received the permission or licence to handle rare minerals or substances such as tantalum pentoxide, niobium pentoxide, tin and titanium dioxide from the Department of Atomic Energy.
Owais Metals shares traded more than 18 percent higher by noon on March 21, after surging more than 65 percent in the past five trading sessions.
The company in its press release mentioned that it has acquired the technology to extract the rare earth element or substance from waste and the company would soon begin the installation of its first plant at Meghnagar.
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The company while utilising the plant shall process waste to extract rare earth element or substances from it. In a March 20 press release, the company explained that the availability of such materials is difficult, and for further extraction of these rare earth element /substances atomic permission is required for its handling.
These substances/rare earth element are being used in various products such as capacitors, semiconductors, superconductors, alloys, surgical instruments, jet engines and in defence equipment.
The company had a stellar listing in March when the shares of Owais Metal jumped 187.36 percent on debut, hitting the upper circuit. The Owais IPO was oversubscribed by 221.18X with retail portion being oversubscribed by 248.50x and HNI/NII portion by 329.36x.
The issue price was Rs 87 per share. The BSE SME IPO index is up by 2.61 percent when BSE Sensex has strengthened by 0.7 percent.
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