KIOCL rose 9.16% to Rs 162.10 at 11:30 IST on BSE after Union Cabinet decided to sell stake in the company via follow-on public offer.
Meanwhile, the S&P BSE Sensex was up 35.13 points, or 0.10% to 36,111.85.On the BSE, 6,866 shares were traded in the counter so far compared with average daily volumes of 1,123 shares in the past two weeks. The stock had hit a high of Rs 167.30 and a low of Rs 152.20 so far during the day. The stock hit a 52-week high of Rs 407.70 on 1 January 2018. The stock hit a 52-week low of Rs 120 on 28 December 2018.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has given its approval for initial public offering (IPO)/further public offer (FPO) in seven Central Public Sector Enterprises (CPSE).
The Cabinet has approved IPOs of Telecommunication Consultants (India) (TCIL), RailTel Corporation India, National Seed Corporation India (NSC), Tehri Hydro Development Corporation (THDC), Water & Power Consultancy Services (India) (WAPCOS) and FCI Aravali Gypsum and Minerals (India) (FAGMIL).
The Cabinet has approved FPO of Kudremukh Iron Ore Company (KIOCL). As on 30 September 2018, the government held 98.996% stake in KIOCL.
The listing of CPSEs on the exchange shall unlock their value and encourage investor participation in the CPSEs. Further, alternative mechanism comprising of the Finance Minister, Minister of Road Transport & Shipping and the Minster of concerned administrative ministry has been empowered to decide on extent, mode of disinvestment, pricing, time etc. of listed CPSEs (including CPSEs to be listed in future), Ministry of Finance said in a statement on 28 December 2018.
Net profit of KIOCL rose 2016.24% to Rs 49.52 crore on 5.75% decline in net sales to Rs 425.42 crore in Q2 September 2018 over Q2 September 2017.
KIOCL, a flagship company under the Ministry of Steel, Government of India, with Mini Ratna status was formed in 2 April 1976. The company has expertise in iron ore mining, filtration technology and production of high quality pellets.
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