Forbes & Co in the limelight

Forbes & Company is in the limelight today morning. The stock which has closed on Friday at Rs.1340, opened lower at Rs.1310, going up to an intra day high at Rs.1369. Its 52-week high remains at Rs.1850.

Though the company is yet to inform the stock exchanges about it, the Singapore based subsidiary company, Forbes Container Line Pte Ltd, issued a statement that last month it has quietly closed down its business without returning containers leased to the company by five entities and settling outstanding dues of as much as $20 million. Forbes Container Line had a fleet of some 10,000 containers, of which about 9,000 containers were taken on lease from various container leasing companies.

The market is actually happy with this news as the company was as such trying to exit the container freight stations (CFS) and logistics business as both were not a strategic fit with its long-term vision. Also, financially, it is a prudent move to exit this venture thus bringing about value back in the company.