BPCL shares hit 52-week high after privatisation move

Shares of Bharat Petroleum Corp Ltd (BPCL), Shipping Corp of India (SCI) and Container Corp of India (Concor) showed a mixed trend on Thursday after the Cabinet approved the sale of government's stake in these companies.

BPCL which opened the day 0.92 percent higher at Rs 549.70 -- its 52-week high -- later erased the gains and fell to a low of Rs 527.35, down 3.17 percent over its previous close on BSE.

Shares of Shipping Corp also rose 2.12 percent to hit a one year high of Rs 69.80 in opening trade but later pared the gains. It declined to Rs 64.80, lower by 5.19 percent over its last close.

However, Container Corp shares jumped 4.67 percent to Rs 605.

In the biggest privatization drive ever, the Union Cabinet on Wednesday approved the sale of government's stake in blue-chip oil firm BPCL, shipping firm SCI and cargo mover Concor as well as decided to cut shareholding in select public sector firms below 51 percent to boost revenue collections that have been hit by the slowing economy.

The Cabinet Committee on Economic Affairs (CCEA) approved the sale of government's entire 53.29 percent stake along with transfer of management control in the country's second-biggest state-owned refiner Bharat Petroleum Corp Ltd after taking out Numaligarh refinery from its fold, Finance Minister Nirmala Sitharaman told reporters on Wednesday.

It also approved the sale of an entire 63.75 percent government holding in Shipping Corp of India (SCI) and a 30.8 percent stake in Container Corp of India (Concor).

The government currently holds 54.80 percent in Concor and will retain 24 percent stake post-sell-off but without any veto powers or management say, Disinvestment Secretary Tuhin Kanta Pandey said.