Shares of state-owned Punjab Tractors (PTL) today moved to an intra-day high of Rs 147 on Business Standard report that the government had appointed KPMG as an advisor for privatising the company.
Later the stock closed at Rs 142.15 amid heavy volume of 53,985 shares on the BSE and 2.29 lakh shares on the NSE compared with the daily average in the past month of 27,000 shares.
Business Standard had reported on Saturday that the Punjab government had chosen KPMG to advise it on the sell-off. In July, a state government official had said the government was looking to sell its 24 per cent stake in Punjab Tractors, which controls a fifth of India's tractor market.
In 38 sessions between August 19 and September 13, the scrip dropped 15 per cent to Rs 140.30 from Rs 165. The stock is moving higher on anticipation that its disinvestment may take place soon.
Analysts said that the recent rally in PTL is purely on anticipation of its disinvestment rather than any fundamental strength.
The state government holds 24 per cent in Punjab Tractors. While institutions and the public hold 54.95 per cent and 17.62 per cent, respectively. For the first quarter ended June 30, PTL registered a 45 per cent fall in net profit to Rs 14 crore (Rs 25.40 crore) on a 26.6 per cent decline in total income to Rs 161.70 crore (Rs 220.50 crore).
