STC India hits two-year high; stock zooms 97% in two weeks

The stock up 10% at Rs 230, its highest level since June 10, 2014 on the BSE.

State Trading Corporation of India (STC India) has locked in upper circuit of 10% at Rs 230, also its two-year high on the BSE in an otherwise weak market. The stock of state-owned company is trading at its highest level since June 10, 2014.

Till 12:22 pm; a combined 1.94 million shares have changed hands on the counter and there were pending buy orders for 719,141 shares on the BSE and NSE.

In past two-weeks, the stock has zoomed 97% from Rs 117 on December 19, as compared to a marginal 0.41% rise in the S&P BSE Sensex.

On December 23, 2016, Smithblock Financial Services Private Limited bought 400,000 shares of STC India at Rs 142.25 per share on the NSE, the bulk deal data shows.

The company has a paid up equity capital of Rs 60 crore, with 90% of the holding with the Central and State governments. The remaining 10% stakes are with individual shareholders (6.17%), insurance companies (1.92%) and bodies corporate (1.77%).

STC India, an international trading company owned by Government of India, posted a net profit of Rs 19 crore during the first six months (April to September) of the financial year 2016-17 (FY17) against a net loss of Rs 11 lakh in the same period last fiscal. It had reported profit of Rs 18 crore during the entire previous fiscal FY16.

Earlier in 2007, between September 3 and November 16, 2007, in 45 trading sessions, the stock soared 896% from Rs 83 to Rs 827 on the BSE.

On September 26, 2007, the board of STC India had recommend allotting of bonus shares at a ratio of 1:1 (i.e. 1 bonus equity shares for every 1 existing fully paid up equity share).