Shares of state-owned Shipping Corporation of India rallied nearly 15 per cent on Thursday, hitting fresh 52-week of Rs 84.85 apiece on the Bombay Stock Exchange (BSE), amid spurt in volume trade in an otherwise weak market. The stock has rallied as much as 60 per cent in the last three weeks amid report that global and domestic players have expressed interest for privatisation process for the PSU unit that operates and manages vessels that services both national and international lines.
Extending previous session rally, Shipping Corporation share price opened higher at Rs 82 against the previous closing price of Rs 73.80. On the back of surge in buying, the stock rallied 14.9 per cent to touch fresh 52-week high of Rs 84.85. The market cap of the company rose to Rs 3,940.66. In contrast, the BSE Sensex was trading 317 points, or 0.69 per cent, lower at 45,786.
On the volume front, there was surge in buying as 17.13 lakh shares changed hands over the counter as compared to two-week average volume of 4.87 lakh shares.
In a similar trend, Shipping Corporation shares were trading 14.86 per cent higher at Rs 84.65 after opening higher at Rs 82 on the National Stock Exchange (NSE). The stock hit a 52-week high of Rs 84.90.
The Union Cabinet on November 20, 2019 had accorded ''in-principle'' approval for strategic disinvestment of government of India's 63.75 per cent stake in Shipping Corporation of India (SCI) along with transfer of management control to a strategic buyer. The government has appointed RBSA Advisors as the transaction advisor for the privatisation of SCI.
SCI, the country's largest shipping company with a fleet strength of 59 vessels, reported a consolidated net profit of Rs 141.89 crore in July-September quarter of the current fiscal as against a net loss of Rs 40.91 crore in Q2 FY20. Net sales during the quarter fell by 13.5 per cent YoY to Rs 843.21 crore.
By Chitranjan Kumar
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