NECC shares rebound as company inks MoU to buy stake in logistics firm

Shares of North Eastern Carrying Corporation Ltd (NECC) rebounded on Tuesday after the company announced to enter into a memorandum of understanding (MoU) with SG Logistic Management to acquire a stake in it. The company informed about the same through an exchange filing on Monday.

The company has entered into memorandum of understanding (MoU) with SG Logistic Management Pvt Ltd on December 04, 2023 (Monday) to invest upto 20 crore in the same and acquiring up to 20 per cent of shares/ other securities therein, said the company in the exchange filing.

SG Logistic Management is a part of SG Group, which is into the logistics industry. The acquisition has been made for the purpose of trucking through electric vehicles (EVs). The company will inform about the indicative time period for completion of the acquisition in the due course of time.

Following the update, shares of North Eastern Carrying Corporation rebounded about 3 per cent to Rs 32 on Tuesday, from day's low at Rs 31.20, commanding a total market capitalization of more than Rs 300 crore. The scrip had settled at Rs 31.50 in the previous trading session.

Shares of NECC surged about 150 per cent from its 52-week low at Rs 13.20 hit in March 2023. The stock has gained about 40 per cent in the year 2023 so far, while the stock is up about 60 per cent in the last six months period. It is up over 35 per cent in the last one-month period.

NECC offers a wide range of transport services in India, Nepal and Bhutan. Its services include booking small parcels, full truck load consignments, project consignments to over dimensional consignments (ODC). NECC also provides containerized movement of cargo, warehousing, packing and moving and storage facilities.

Also read: Upcoming IPO: Doms Industries' issue to open on December 13