Kirloskar Ferrous Industries Ltd saw its stock rise over 3% in early trade on Wednesday after the company announced a key development in its raw material strategy. As of 9:18 AM, the shares were trading 2.81% higher at Rs 594.00.
The Government of Karnataka has declared Kirloskar Ferrous as the ‘Preferred Bidder’ for the Jambunatha Iron Ore Mine, following a competitive electronic auction process.
The bidding was part of the Karnataka government’s tender issued on October 3, 2024, inviting applications for mining leases across the state. Kirloskar Ferrous participated in the e-auction conducted on January 27, 2025, and submitted the highest final price offer for the Jambunatha mine, which secured them the preferred bidder status. The official confirmation came via a letter from the Department of Mines and Geology dated July 22, 2025.
The mining lease will be formally granted once the company fulfills all the required formalities — including payments, approvals, and execution of agreements with government agencies. This includes obtaining regulatory clearances and completing conditions set out in the tender documents.
The development is being seen as a strategic win for Kirloskar Ferrous, which has been looking to secure backward integration of raw material supply.
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