Selloff Move Buoys Shipping Corp

Shares of Shipping Corporation of India (SCI) closed 2.64 per cent higher at Rs 77.85 on the Bombay Stock Exchange (BSE) today, after hitting an intraday high of Rs 78.80 on hopes that the disinvestment process of the company would begin shortly.

Around 8.40 lakh shares of the company changed hands on the BSE and National Stock Exchange combined.

SCI was scheduled for disinvestment in June 2002. However, this has been delayed. Expectations are now high that price bids for the 51 per cent government stake in SCI may be invited in early September 2002.

As per reports, the government has for the first time allowed the sale of physical assets of a public sector undertaking (PSU) immediately after divestment.

The government made the exception in case of SCI keeping in view the peculiar nature of the shipping industry. It noted that buying and selling ships was an integral part of the business. Currently, the Centre holds an 80.12 per cent stake in the company.

According to market talks, Great Eastern Shipping Company, Essar Shipping, and Sterlite Industries are in the race to pick up the Centre's stake in the shipping major.

SCI is engaged in the transportation of crude oil, LPG, bulk cargo and containers. It also specialises in the transportation of LNG. SCI's status as the nodal agency for the movement of crude oil ended on March 31, 2002.