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State firms up on govt stake sale hopes-news22032012


Shares in state-run companies jumped on hopes the government would initiate stake sales in these companies.

On the BSE at 1.25 pm, Dredging Corporation of India up by 8.17%, Hindustan Copper up by 7.72%, MMTC up by 6.10%,

Those expectations come state-run National Building Construction Corp, a consultant for civil construction and real estate projects, said it aims to raise up to Rs1.27 billion through a share sale that will see the government divest itself of a 10% stake.

The government has been looking pare its holdings in state firms, but it has been thwarted by weak markets.

India's stalled divestment programme also calls for reduced stakes in other state-run firms such as Bharat Heavy Electricals and Steel Authority of India.
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