MSTC stock zooms 20% after L&T appoints the firm as its selling agent
Shares of MSTC zoomed 20 per cent to Rs 148 on the BSE on Thursday after the construction & engineering giant Larsen & Toubro (L&T) appointed the company as its selling agent.
The stock of the state-owned e-commerce firm was trading at its highest level since listing on March 29, 2019. In the past nine trading days, it soared 56 per cent, as compared to a four per cent rise in the S&P BSE Sensex. The stock has more than doubled from its recent low price of Rs 70, touched on August 14 in the intra-day deal.
“Larsen and Toubro has appointed MSTC as the selling agent as per the terms of selling agency agreement entered by both the parties on October 29, 2019 for the sale of scrap and rejected/condemned/obsolete secondary arising (ferrous and non-ferrous) as well as surplus obsolete stores, equipments and misc. articles etc. for buildings and factories IC of L&T in India through MSTC’s e-Auction website,” MSTC said in a regulatory filing on Wednesday after market hours.
The contract will remain valid till its termination by giving advance notice of 1 month, it added.
In a separate filing, MSTC today announced that the company has entered into a Memorandum of Understanding (MOU) with Burn Standard Co for e-Auction services for sale of movable assets and immovable assets. The agreement shall remain valid up to March 31, 2021 until it is terminated by either party by giving three months notice, it added.
MSTC had raised Rs 226 crore through its initial public offering (IPO) at a price of Rs 120 per share. The company specialises in international trade of ferrous input materials and imports millions of tons of ferrous melting scrap, old ships for breaking, sponge iron, hot briquetted iron, re-rollable scrap etc.
At 11:51 am, the stock was trading 17 per cent higher at Rs 144 on the BSE, against a 0.17 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped nearly five-fold with a combined 2.7 million shares changing hands on the BSE and NSE so far.