IMFA acquired Tata Steel's ferro alloy plant for ₹610 crore. The company also announced its September quarter results and declared a ₹5 dividend. The stock registered a 5% surge.
Stock Market: Shares of Indian Metals and Ferro Alloys (IMFA), a smallcap company in the metal sector, witnessed a 5% surge on Tuesday. The stock touched an intraday high of ₹1,275. This rally was driven by the company's announcement of acquiring Tata Steel's ferro alloys plant for ₹610 crore. Concurrently, the company also declared its September quarter results.
Tata Steel Plant Acquisition to Boost Production Capacity
On November 4, the company's board approved the proposal to acquire assets of Tata Steel's ferro alloys plant. An Asset Transfer Agreement (ATA) will be signed between IMFA and Tata Steel for this purpose. This acquisition is expected to increase the company's production capacity and expand its ferro alloy business.
The plant's proximity to IMFA's mines and the upcoming project in Kalinganagar is expected to result in cost savings and operational efficiency. The company stated that the acquisition could be completed within 3 to 6 months, provided all government approvals and terms of the agreement are met.
Quarter Results: Profit Declines, Revenue Rises
IMFA reported a consolidated net profit of ₹98.77 crore in the September quarter, marking a 21.4% decrease from ₹125.72 crore in the previous year. Meanwhile, total revenue grew by 3.86% to ₹718.65 crore. The ferro alloy business generated a revenue of ₹718.07 crore, increasing 4% year-on-year, but its EBIT witnessed an approximate 15% decline. The company's power and mining segments reported minor losses.
₹5 Dividend Announced
IMFA also announced an interim dividend of ₹5 for the financial year 2025-26. The record date for this has been fixed as November 11, 2025. Eligible shareholders will receive this dividend on December 3, 2025.
