Weakness prevails in STC counter

Meanwhile, the S&P BSE Sensex was up 169.07 points, or 0.86%, to 19,845.13.

On BSE, 58,000 shares were traded in the counter as against an average daily volume of 1.36 lakh shares in the past one quarter.

The stock hit a high of Rs 100.20 and a low of Rs 95.25 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 stock had underperformed the market over the past one month till 11 July 2013, sliding 34.14% compared with the Sensex's 2.78% rise. The scrip had also underperformed the market in past one quarter, falling 40.27% as against Sensex's 6.12% rise.

The small-cap company has an equity capital of Rs 60 crore. Face value per share is Rs 10.

The Cabinet Committee on Economic Affairs (CCEA) on Thursday, 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.

STC shares tumbled 5.23% to Rs 99.75 on Thursday, 11 July 2013. The stock has declined 7.98% in two sessions from Rs 105.25 on Wednesday, 10 July 2013.

The stock fell 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.

Powered by Capital Market - Live News