Mercator up 5.5% on release of pledged shares

Mercator gained as much as 5.5 percent intraday on Friday after company's promoter released one crore pledge shares yesterday.

Promoters hold 40.22 percent stake (9.85 crore shares) in the company. Out of which, they have pledged 3.5 crore equity shares.

On Thursday, they have released 28.6 percent (1 crore) of total pledged shares. Hence, the total pledged shares will come down to 2.5 crore.

At 13:59 hours IST, the stock rose 2.84 percent to Rs 21.70 amid large volumes on the Bombay Stock Exchange.

Trading volumes increased 663 percent to 9,36,671 equity shares as compared to its five day average of 1,22,721 shares.

Another news

Singapore based step down subsidiary, Mercator Lines (Singapore), (MLS) has entered into separate early termination and settlement agreements with the owners of two vessels.

Pursuant to which MLS and the respective owners have agreed to the early termination of the respective charters effective December 31, 2012 and March 31, 2013 respectively, according to a release.

"The consideration for the agreement by the owners to the early termination of the charters of the vessels is in the form of cash compensation and issue of 6.42 crore new ordinary shares in the capital of MLS. The compensation shares will be issued at a price equivalent to the closing price for the ordinary shares on the SGX-ST on the market day, preceding the date on which the compensation shares are issued to the owners, provided that the issue price per share shall not less than Singapore dollar 0.114," the company said.

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