Sitharaman further added the management control of the respective companies will be handed over to strategic buyers
Bharat Petroleum Corp, Shipping Corporation of India stocks hit fresh 52-week highs on Thursday after Finance Minister Nirmala Sitharaman announced the Cabinet has given in-principle approval for disinvestment in select blue-chip public sector companies, along with transfer of certain management control.
Following the development, shares of Shipping Corporation of India opened 2.12% higher to hit a new-52 week high of Rs 69.8. Although, Shipping Corporation shares later erased all gains to trade 5.19% lower at Rs 64.8. BPCL shares too hit a fresh 52-high of Rs 549.7 with the opening bell, but later reversed the trend to fall 2.47% intraday to Rs 527.35.
Contrary to this, share price Container Corporation rose 4.67% with Thursday's opening bell to Rs 605.
The government has given in-principle approval to stake sale of 63.75% in Shipping Corporation of India, 53.2% stake sale in Bharat Petroleum Corporation Limited (BPCL) excluding Numaligarh refinery and 30.8% divestment in Container Corporation of India to a strategic buyer.
Cabinet has also given in-principle approval for disinvestment of 74.23% in Tehri Hydro Development Corporation of India (THDC) and 100% of North Eastern Electric Power Corporation Limited (NEEPCO) to state-owned NTPC. Following the development, NTPC shares were trading 1.5% lower at Rs 115.15.
Sitharaman further added the management control of the respective companies will be handed over to strategic buyers.