Mercator up 8% on divestment of stake in Singapore unit

Moneycontrol BureauShares of Mercator gained more than 8 percent intraday Thursday on the back of divestment if its stake in Singapore unit.Mercator International Pte, subsidiary of Mercator, has received approval from Singapore Exchange for divestment of its entire stake in Mercator Lines (Singapore).In an interview with CNBC-TV18 Atul Agarwal, Joint MD of Mercator Lines said, "The company has sold dry bulk loss making unit, which will reduce debt by Rs 1,000 crore. The transfer of shares will be completed over the weekend.""The company is going to be profitable on a consolidated basis in Q1FY17 as the volumes in dredging have increased by 30 percent. Also, logistics & coal mining business in Indonesia is doing well. It will see revenue growth of 15-20 percent in FY17," he added.At 09:56 hrs Mercator was quoting at Rs 21.80, up Rs 1.60, or 7.92 percent on the BSE.Posted by Rakesh Patil