The share price of Punjab Communication, a state government owned telecom equipment manufacturer, shot up by 11 76 per cent today following an advertisement by the Punjab State Electronics Development and Production Corporation inviting bids for a 69.76 per cent stake in the company.
On the Bombay Stock Exchange (BSE), the stock hit a high of Rs 74.95 during intraday trades but settled at Rs 73.15, up 11.76 per cent over Friday's close.
More than 87,000 shares were traded. Dealers said, "Several retail investors were active on the counter on hopes of better valuation on divestment."
Other state-owned of Punjab such as Punjab Tractor (up 2.98 per cent to Rs 159.20) and Punjab Alkali (up 5.94 per cent to Rs 16.04) also rose.
Recently, a panel had recommended that the state government of Punjab to sell its stake in the company to a strategic partner in two tranches.
In the first phase, 43.96 per cent would be sold to a strategic partner, who will purchase balance 26 per cent two years later.
As on June 31, 2002, public and institutions held 25 per cent and 1.43 per cent, respectively Punjab Communication has been promoted by the Punjab State Electronics Development and Production Corporation to manufacture direct-to-line multiplexing equipment.
Further, the company diversified into production of pulse code modulated multiplexers, trans-multiplexers, voice frequency telegraphs, rural automatic exchanges, digital VHF radios, etc.
For the quarter ended June 31, 2002, the company posted a net profit of Rs 4.82 crore on a 147 per cent rise in net sales at Rs 56.99 crore.
