Gujarat Governor Gains Rs 13,17,79,20,000 in just a single day from Rare Earth Stock; FIIs Raise Stake

Indian equity benchmark indices ended Friday's session lower, with the Nifty 50 slipping below its key psychological mark of 25,000. The broader markets also closed in the red. However, one stock stood out with exceptional performance on Friday — Gujarat Mineral Development Corporation (GMDC), a public sector undertaking (PSU).

GMDC shares surged by 14.7 per cent on Friday, July 18, 2025, gaining Rs 56 in absolute terms. The stock opened at Rs 380, touched an intraday high of Rs 443.10, and eventually settled at Rs 435.30 on the NSE.

A striking observation emerges upon reviewing GMDC’s shareholding pattern: 74 per cent of the company's equity, amounting to 23.53 crore shares, is held by the Governor of Gujarat. This translates into an unrealised profit of Rs 13,17,79,20,000 (Rs 1,317.79 crore) in a single day for the state government.

The stock attracted attention ahead of its quarterly earnings, scheduled to be announced by July 25, 2025. It also gained momentum following reports that the Prime Minister’s Office (PMO) may convene a key stakeholder meeting to address the rare-earth magnet supply crisis.

GMDC, a Gujarat-based mining and mineral company, has taken a significant step toward enhancing India’s self-sufficiency in rare earth elements (REEs). The Ambadongar deposit in Gujarat’s Chhota Udepur district is among the world’s largest known sources of REEs. These critical minerals are vital for clean energy technologies such as electric vehicles (EVs) and wind turbines. Through this initiative, GMDC aims to create a fully integrated supply chain — from extraction to processing and manufacturing — positioning Gujarat as a global hub for rare earth processing.

REEs are especially crucial for permanent magnets used in EVs and wind turbines. However, their global supply remains constrained due to surging demand for low-carbon solutions. The current REE industry is monopolistic, often leading to supply shortages and price volatility. This makes building an independent REE supply chain a strategic priority for India.

Additionally, GMDC’s June quarter shareholding pattern reveals increased interest from institutional investors. Foreign Institutional Investors (FIIs) raised their stake from 2.15 per cent to 2.25 per cent during the quarter, with Domestic Institutional Investors (DIIs) also upping their holdings.

Gujarat Mineral Development Corporation Ltd. (GMDC) is one of India’s foremost mining and mineral processing companies. For over five decades, it has played a pivotal role in developing Gujarat’s abundant mineral resources.

Disclaimer: The article is for informational purposes only and not investment advice.