GE Shipping rides high on recast talks

DALAL STREET SPIKES

GE Shipping surged on Monday on announcement of its board meeting on Wednesday (August 31) to consider its restructuring. The shipping major has gained 6.87 per cent or Rs 11.65 to close at 181.30. Over four lakh shares changed hands in the counter on the BSE.

"The division of assets of K M Seth, the patriarch of the company, among two brothers and their cousin is expected to be smooth. Thus, the market is expecting better value for the company even after the division, thus pushing up the shares," a dealer said.

Though different permutations and combinations are being considered, there is atrong possibility of hiving off offshore business, constituting 12 per cent of the company's revenues and 9 per cent of its profit last year. Such a move is expected to increase the valuations of the demerged entity.