KIOCL Limited , a Ministry of Steel enterprise, saw its shares skyrocket on Monday, catching the attention of both investors and market regulators. The stock's dramatic rise prompted exchanges to seek clarification from the company due to abnormally high trading volumes.

Stock Performance Highlights

• Share Price Movement: KIOCL shares surged 19.00% to reach a 52-week high of Rs 629.30 on the National Stock Exchange (NSE).
• Recent Rally: The stock has extended its run, posting a 48.00% gain over the last three trading sessions.
• Trading Volume: By 2 pm, over 2 crore shares had changed hands, with the total traded value touching Rs 1,320.00 crore.
• Long-term Performance: KIOCL shares have delivered returns of 230.00% over three years and 67.00% in the past year, outperforming benchmark indices.

Company Overview

KIOCL Limited operates iron ore mining and beneficiation activities in Karnataka, with a 3.5 MTPA iron-oxide pellet plant. The company's recent financial performance shows signs of improvement despite challenges:

Technical Indicators

• The stock is currently trading above both its 50-day and 200-day moving averages.
• Technical analysis suggests that the stock has entered overbought territory.

Market Reaction

The unusual spike in trading volume and share price has drawn the attention of stock exchanges, which have sought clarification from KIOCL regarding the sudden surge in market activity. This move is standard practice when stocks exhibit abnormal trading patterns to ensure market transparency and protect investor interests.

Investors should note that while the stock has shown impressive gains, it's crucial to consider both the improved financial performance and the technical indicators suggesting overbought conditions. As always, thorough research and careful consideration of risk factors are advised before making investment decisions.

KIOCL Limited (formerly known as Kudremukh Iron Ore Company Limited) has received final approval to exit the 100% Export Oriented Unit (EOU) Scheme, marking a significant shift in its operational status. The Development Commissioner of Cochin Special Economic Zone (CSEZ) has granted the exit order, subject to compliance with specific conditions outlined in the Foreign Trade Policy 2023.

Exit Approval Details

The final exit order, dated August 7, 2025, cancels KIOCL's Letter of Permission No. CIL:269(82) from September 3, 1982, and the associated Green Card issued under the EOU Scheme. This change comes after KIOCL's long-standing operation under the EOU scheme, which began on October 1, 1981, for its iron ore pellet manufacturing facility in Panambur, Mangaluru.

Compliance Requirements

The approval is contingent on KIOCL fulfilling several conditions:

1. Settlement of applicable customs, excise duties, and taxes
2. Execution of legal undertakings
3. Compliance with other statutory requirements as per Para 6.17 of the Foreign Trade Policy 2023

Pending Financial Obligations

A significant aspect of this exit process is the financial obligations that KIOCL faces. The Assistant Commissioner of Customs has certified that there are four cases of confirmed demands against KIOCL Limited, involving a total amount of Rs. 36.95 crore. These cases are currently pending in various appellate forums.

Legal Undertaking

As part of the exit process, KIOCL has executed a legal undertaking with the office of the Development Commissioner, CSEZ. This undertaking commits the company to pay any penalties that may be imposed under the Foreign Trade Act, 1992.

Implications for KIOCL

This exit from the EOU scheme represents a strategic shift for KIOCL Limited. While the move may offer new operational flexibility, it also brings the challenge of addressing the pending financial demands and adapting to regulations applicable to Domestic Tariff Area (DTA) units.

The company will need to comply with industrial, locational, environmental, and other laws and regulations that govern DTA units if it wishes to continue operations in the Domestic Tariff Area.

KIOCL's management will likely focus on resolving the pending cases and ensuring smooth transition from the EOU scheme to its new operational framework. Stakeholders and investors will be watching closely to see how this change affects the company's future performance and strategic direction in the iron ore pellet manufacturing sector.