MSTC up 91% in 12 days; Chhattisgarh govt appoints co its selling agent

Shares of MSTC continued their northward journey, rallying 18 per cent to Rs 181 on the BSE on Wednesday after the Chhattisgarh government 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 last 12 trading days, it has soared 91 per cent, as compared to a 3.3 per cent rise in the S&P BSE Sensex.

“Governor of Chhattisgarh on behalf of Government of Chhattisgarh has appointed MSTC as the selling agent as per the terms of selling agency agreement entered by both the parties on November 11, 2019,” the company said in a regulatory filing.

The agreement will remain valid for three years from the date of execution of agreement, it added.

On Thursday, November 7, MSTC announced that the company had entered into a Memorandum of Understanding (MOU) with Burn Standard Co for e-Auction services for sale of movable assets and immovable assets.

Earlier, on November 6, the company said the construction & engineering giant Larsen & Toubro (L&T) appointed the company as its selling agent.

The appointment 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 a sudden spurt in the stock price, the company said it has not shared any price sensitive information with any market intermediary or any other party and therefore the reason for rise in the price of the shares of the company is not known to the Company.

Discovery of price of security is a function of several factors and is carried out purely on the Exchange platform. We do not have any control on the movement of the price of the shares of the Company, it added.