STC tumbles after CCEA OKs stake sale

Meanwhile, the S&P BSE Sensex was up 386.71 points, or 2%, to 19,680.83.

On BSE, 4.71 lakh shares were traded in the counter as against an average daily volume of 1.29 lakh shares in the past one quarter.

The stock hit a high of Rs 108.90 and a low of Rs 95.15 so far during the day. The stock had hit a 52-week low of Rs 77.40 on 25 June 2013. The stock had hit a 52-week high of Rs 300.85 on 9 August 2012.

The Cabinet Committee on Economic Affairs (CCEA) today, 11 July 2013, approved the disinvestment of 1.02% paid-up equity capital in State Trading Corporation of India (STC).

The government currently holds 91.02% in STC (as on 31 March 2013). The stake sale will make the company compliant with the minimum 10% public holding norm of market regulator Sebi. Sebi has mandated minimum public shareholding of 10% for state-run firms by 8 August 2013.

Shares of STC tumbled on concerns that the floor price for the stake sale will be set at a discount to the ruling market price.

Net profit of State Trading Corporation of India rose 84.28% to Rs 10.67 crore on 14.30% fall in net sales to Rs 4860.28 crore in Q4 March 2013 over Q4 March 2012.

STC is a premier international trading company that was set up in 1956. STC undertakes import and export of large number of bulk commodities such as rice, wheat, sugar, pulses, edible oils, fertilisers, coal, bullion, etc. It also undertakes import of mass consumption items like wheat, sugar, pulses, etc. as and when called upon by the Government to do so.

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