business forward

Steel Exchange India up 5% on FPI buying, stock price doubles in one month - Business Standard

Shares of Steel Exchange India (SEIL) were locked at the 5 per cent upper circuit at Rs 238, also its new high on the National Stock Exchange (NSE) on Wednesday after the foreign portfolio investor bought 5 million equity shares of the company via open market.

On Tuesday, January 11, 2022, Societe Generale acquired 500,000 equity shares representing 0.57 per cent stake in SEIL for Rs 11.30 crore. The FPI purchased shares at price of Rs 226.02 per share via bulk deal on the NSE, exchange data showed. The name of the sellers were not ascertained immediately.

In the past one month, the stock has zoomed 107 per cent, as compared to 1 per cent rise in the Nifty50 index. In three months, it rallied 216 per cent, as against 1.2 per cent gain in the benchmark index.

On December 24, 2021, the company’s board had approved evaluation of various options for restructuring with respect to business verticals of the company and better utilization of organic inorganic assets of the company.

The management said there is a need to unlock the value of these underutilized assets by way of a new Logistics Warehousing services business model (Logistics Warehousing Hub) which can complement and add value to the SEIL operations and all the stakeholders.

In this regard the board deliberated the proposal and had suggested to appoint a reputed consultant/ advisor to make a feasibility report with various options of the business model to unlock the value of the unutilized and underutilized infra-assets of the company.

For the first six months (April-September) of the financial year 2021-22 (H1FY22), SEIL had posted net loss of Rs 7.87 crore against profit of Rs 18.52 crore in H1FY21.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance. We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard .

Digital Editor