The share prices of public sector companies in which the government plans to dilute its stake rose after Coal India chairman and managing director said the company would approach the market regulator this month for an initial public offer (IPO).
Hindustan Copper, NMDC, State Trading Corporation of India and Dredging Corporation rose 8-10 per cent in today’s trading. The benchmark index, Sensex, was up only 0.64 per cent, or 106 points. The BSE PSU index was up 1.67 per cent.
According to agency reports, Coal India Chairman and Managing Director Partha S Bhattacharyya said the company would meet the Securities and Exchange Board of India officials on February 19 after which a clearer picture of the timing would emerge. The internal target was to complete the IPO by this calender year, he said.
| ON A HIGH Share price on BSE in Rs | ||
| Company | Stock price | % gain |
| Hind Copper | 582.65 | 10 |
| STC | 540.2 | 10 |
| NMDC | 490.7 | 9.3 |
| Dredging Corp | 661.35 | 8.8 |
| Engineers India | 2089.75 | 2.1 |
| Note: % gain over Feb 8 stock price | ||
“There was buying in these stocks after Coal India’s statement that the company would meet the capital market regulator to set a roadmap for the IPO,” said Sailav Kaji, head of institutional equities at Fiduciary Euromax Capital.
Market players said these companies had low floating stock and so their share prices shoot up even on little buying.
“For instance, NMDC’s floating stock is as low as 0.24 per cent, whereas the floating stock of Hindustan Copper is 0.4 per cent. Whenever there is a any positive news, these stocks witness a sharp rise,” said SP Tulsian, a Mumbai-based independent equity advisor.
