Shares of Adani Enterprises surged 12% to Rs 1,532.85 on the BSE in intraday trade on Wednesday, extending gains from the previous day, as a letter of intent (LoI) was received for the Kutrumali bauxite block in Odisha state. Shares of the Adani Group flagship have risen 28% in the past two days. Meanwhile, the stock has soared more than 39% from Tuesday’s lows.

Adani Enterprises said on Tuesday that its subsidiary Mundra Aluminum (MAL) had been announced by the Odisha government as the preferred bidder for the Kutrumali bauxite block.

MAL, a wholly-owned subsidiary of Adani Enterprises, is mining, refining, smelting, developing, producing and operating bauxite, alumina and aluminium.

“We are pleased to inform you that Mundra Aluminium has been declared the ‘Preferred Bidder’ following the auction process’s outcome. Subsequently, the Government of Odisha has secured the mineral block in Odisha on February 27,” Adani Enterprises said in a bourse filing.

The Kutrumali bauxite block in Odisha’s Kalahandi and Rayagada districts holds about 128 million tonnes of bauxite and other ores.

On August 12, 2022, Adani Enterprises said that Adani Group would invest Rs 57,575 crore in Odisha. The High Clearance Authority (HLCA) of the Odisha government, headed by Chief Minister Naveen Patnaik, has approved Adani Group’s proposal to set up two projects – a 4 MMTPA integrated alumina refinery and a 30 MMTPA iron ore (value-added) project.

The 4 MMTPA integrated alumina refineries to be established near potential bauxite reserves or operating mines will produce smelter-grade (metallurgical grade) alumina, which will help India move towards import substitution. The 30 MMTPA Iron Ore (Value Added) Project will include an iron ore concentrator to produce iron concentrate, an iron concentrate slurry pipeline and a dewatering/filtration and pelletising plant to produce filter cake and pellets.

The iron ore concentrator will be located at Deojhar in the Keonjhar district in northern Odisha, while the pellet plant will be built at Dhamra in the adjoining Bhadrak district. The company said the mud pipeline would run along the utility corridor on the road between Deojhar and Dhamra.

However, despite the rebound in the past two days, Adani Enterprises’ share price has fallen 63% from its all-time high of Rs 4,189.55 on December 21, 2022.