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KIOCL stock rises over 12% on govt plan to cut stake via follow on public offer

KIOCL stock rises over 12% on govt plan to cut stake via follow on public offer

The mid cap stock rose up to 12.66% to 167.30 on the BSE. The stock has lost 56.14% during the last one year and since the beginning of this year.

The KIOCL stock rose in early trade today after the government said it would reduce its stake in the firm through a follow-up offering. The mid cap stock rose up to 12.66% to 167.30 on the BSE. The stock has lost 56.14% during the last one year and since the beginning of this year. The stock is trading above its 50 day moving average of 153.81 but below its 200 day moving average of 170.15 on the BSE.

The stock opened with gain of 2.49% at 152.20 level on the BSE. The stock has been gaining for the last three days and has risen 10.58% in the period.

Also read: Govt clears listing of seven CPSEs in effort to meet disinvestment target

The government owns 99% stake in the firm with a shareholding of 62.81 crore shares. KIOCL is engaged in manufacturing iron ore pellets. The company's products include pellets and pig iron castings. It operates a pellet manufacturing plant in Mangalore. Its services include operation and maintenance (O&M) contracts.

 The government is racing against time to achieve disinvestment target for the 2018-2019 fiscal year.

The government faces the risk of missing its divestment target for the year, having garnered less than half the Rs 80,000 crore targeted amount.

As against the budgeted disinvestment target of Rs 80,000 crore, the government has so far raised Rs 34,000 crore by selling minority stake in CPSEs and ETFs.

Meanwhile, the Sensex and Nifty opened higher on the last trading day of the year today. While the Sensex rose 200 points to 36,276, Nifty gained 60 points to 10,920. Of 30 Sensex stocks, 26 were trading in the green. Tata Motors (1.29%), Bharti Airtel (1.04%), SBI (1.02%) and Vedanta (0.93%) were the top Sensex gainers.

Edited by Aseem Thapliyal