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MSTC rises 4% after the Government approves FSNL sale for ₹320 crore

Stocks
2 min Read Sep 20, 2024
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MSTC Limited’s stock surged by 4% after the government approved the sale of its subsidiary Ferro Scrap Nigam Limited (FSNL) for ₹320 crore to Japan’s Konoike Transport Co. Ltd. The Cabinet Committee on Economic Affairs (CCEA) selected Konoike as the highest bidder, boosting investor confidence in MSTC, especially for those considering share market investment.

MSTC’s share price jumps

Following the approval, MSTC’s shares hit an intraday high of ₹752 on the BSE. The stock saw a steady climb, reflecting strong investor interest in the disinvestment deal. MSTC’s stock has shown significant growth in the past year, with a 76% gain, outperforming the BSE Sensex’s 24.5% rise during the same period. This surge makes MSTC a promising option for those involved in share market investment.

Details of the FSNL sale

After a two-stage bidding process, Konoike Transport Co. Ltd. successfully won the bid to acquire a 100% stake in FSNL, a key player in steel mill services. The acquisition is expected to be completed after signing a Share Purchase Agreement (SPA) and fulfilling the necessary conditions. This development has positioned MSTC as an attractive company for potential share market investment.

MSTC’s performance and outlook

MSTC, a state-owned company, is primarily involved in trading ferrous and non-ferrous scrap, and its subsidiary FSNL plays a crucial role in processing steel scrap. With the sale of FSNL, MSTC is set to streamline its operations and potentially unlock more value for its shareholders. Investors eyeing share market investment should take note of MSTC’s robust performance and the strategic sale of FSNL as key factors for future growth.

Invest safely

MSTC’s 4% rise following the government’s approval of the ₹320 crore FSNL sale signals a positive development for both the company and investors. As MSTC continues to streamline its operations, it remains an enticing option for those looking to make a smart share market investment. The sale of FSNL, combined with MSTC’s recent stock performance, makes it a stock to watch closely.