Divestment Hopes Keep Stc Firm

The scrip of State Trading Corporation (STC) of India ended firm in a lacklustre market today riding on the hopes that the government will divest its stake in the company, dealers said. The stock of the trading firm settled at Rs 181.70, up 3.12 per cent, amid a volume of 16,238 shares on the Bombay Stock Exchange.

Earlier, the government had invited bids for the sale of its 65.02 per cent stake in STC to a strategic partner, along with management control. Interested parties have already submitted their expressions of interest to the government, which holds 91.02 per cent holding in the company. In the last four sessions between 19 June and 25 June, the scrip had shed 12.25 per cent to Rs 176.20, from Rs 200.80.

 

Of the 12 entities in the fray to pick up 65 per cent stake in STC, Cargill (USA) and Mitsui (Japan) have opted out, leaving the field open to groups like Adani, Dalmia, Videocon, Essar, Sun, and Mitsubishi of Japan.

The government has already appointed Ernst & Young as global advisor for the disinvestment process.

STC, one of the country