Shipping Corporation of India had a good showing on Monday as well after the company's move to exit a JV was approved by the Centre.
The scrip of the giant shipping PSU jumped up 4.3% to Rs 64.80 on BSE in early trades today. SCI hit a high of Rs 67 and a low of Rs 63.85, earlier. Around 150,000 SCI shares were recorded as volumes on BSE in less than an hour of trading.
SCI shares surged 7.6% to Rs 62.20 on Tuesday. The scrip has gained 12% in the last two trading sessions to the current Rs 64.80 from a low of Rs 57.80 on 20 January 2003.
The stock has been witnessing ups and downs based on news flow connected with its divestment. After rallying to a peak of Rs 109.85 on 4 June 2002, the scrip witnessed a sustained fall due to a delay in its divestment to Rs 52.80 on 21 November 2002. The scrip surged from that low to Rs 68.75 on 27 December 2002 only to lose ground once again to Rs 57.25 on 14 January 2003. From that low, the scrip has bounced back, the rally coming over the last two trading sessions on divestment hopes.
SCI's divestment has already been delayed and recent reports suggest that the government is unlikely to complete that in this fiscal. Earlier, GE Shipping had pulled out of the race to acquire government's stake in SCI citing delays in the divestment process.
The government on Tuesday approved the sale of 20% stake held by SCI in a liquefied natural gas (LNG) joint venture to Japanese firm Mitsui. Earlier, SCI had asked for government permission to sell its 20% stake in the LNG transportation company Greenfield Holding Company to the Japanese partner.
The move by SCI to exit from the LNG venture is seen as a step towards the privatisation of SCI itself. The government plans to put its 51% stake in the shipping major on the block. The Centre altogether owns 80% equity in SCI. Three percent stake will also be sold to employees. In the end, the government will hold 26% in the shipping giant.
SCI is India's leading shipping company. It operates in two segments - the liner segment and bulk segment. The liner segment includes break-bulk and container transport. The bulk segment covers tankers (both crude and product), dry bulk carriers, gas carriers and phosphoric acid carriers.
For the second quarter ended 30 September 2002, SCI suffered a loss at the profit before tax level. The company registered a huge profit after tax due to an extraordinary income of Rs 82.42 crore on account of refund of income tax for earlier years and interest thereon of Rs 7.37 crore. Sales declined by 20% to Rs 596.60 crore (Rs 5.96 billion).