Shipping Corp, ITI scrips rise on stake sale, quota extension
By IANSWednesday, October 6, 2010
MUMBAI - The scrips of state-owned companies Shipping Corporation of India (SCI) and ITI rose Wednesday after the government approved a stake sale in the shipping major and assured bulk orders for the telecom equipment manufacturer.
In an announcement late Tuesday, the Cabinet Committee on Economic Affairs (CCEA) approved a proposal for an issue of fresh equity and stake sale in SCI. The transaction, according to official estimates, would fetch the exchequer Rs.1,300 crore.
The SCI scrip soared 20.46 percent to touch an intra-day high of Rs.202.50, before settling at Rs.194.15 in noon trade at the Bombay Stock Exchange.
Post-stake sale, the government’s holding in SCI will come down to 63.75 percent from the existing 80.12 percent.
Another decision by the CCEA helped boost trader sentiments about ITI.
The quota system, which expired Sep 20, has been extended for the next two years. Under the system, public sector telecom service providers BSNL (Bharat Sanchar Nigam Ltd) and MTNL (Mahanagar Telephone Nigam Ltd) will place 30 percent of their equipment orders with the Bangalore-based ITI.
The news helped the scrip rise 10.97 percent in early trade to touch the intra-day high of Rs.47. It was ruling at Rs.45.75 around noon.
The PSU index at the BSE too was doing relatively better than others. The 30-share sensitive index (Sensex) of the BSE was ruling at 20,538.32 points, up 130.61 points or 0.64 percent in noon trade.
