Logistics major Gati rallied as much as 7 percent intraday on Tuesday as CNBC-TV18 reported that the company is in talks with potential partners for shipping business.
Last year also there were reports that Gati was planning to offload some stake in shipping business, which is a loss making business.
Today, there was some news, which the company's spokesman has confirmed, that a strategic investor is likely to be roped-in in the near future. Gati has four container vessels which are valued around Rs 200 crore. The proceeds from this stake sale will aid Gati to bring down its consolidated debt which stands around Rs 350-400 crore. Some leveraging on the balance sheet will come about if this stake sale goes through. This can be attributed for jump in Gati.
Revenues from its shipping business declined nearly 15 percent year-on-year to Rs 6.96 crore in the third quarter ending December 2012. However, shipping business posted earnings before interest and tax loss of Rs 2.83 crore in Q3FY13 as against loss of Rs 1.66 crore in a year ago period.
Shares rose more than 16 percent in three consecutive sessions since last Friday.
At 14:48 hours IST, the stock moved up nearly 5 percent to Rs 31.25 amid hefty volumes on Bombay Stock Exchange.
Trading volumes increased 4.6 times to 4,19,578 equity shares as against five-day average of 91,029 shares.
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