 "Shipping Corporation hits over 2-year high; stock zooms 60% in 3 weeks")
Shares of Shipping Corporation of India (SCI) continued their upward movement, hitting an over two-year high of Rs 83.70 on the BSE after rallying 13 per cent on Thursday on the back of heavy volumes in an otherwise weak market. The stock of the state-owned shipping company is trading at its highest level since February 2018.
The trading volumes on the counter more-than-doubled against its two-week average, with a combined 16.6 million equity shares changing hands on the NSE and BSE, till 11:39 am. In comparison, the S&P BSE Sensex was down 0.69 per cent at 45,784 points.
In the past three weeks, the stock zoomed 60 per cent on reports that global and domestic players are making a beeline for privatisation process for the company. In comparison, the S&P BSE Sensex was up 5 per cent during the same period.
During initial discussions, players like Essar Shipping, Adani, Great Eastern Shipping, Vedanta, and Dubai Port World have expressed interest in SCI, the report suggested.
The trading volumes on the counter more-than-doubled against its two-week average, with a combined 16.6 million equity shares changing hands on the NSE and BSE, till 11:39 am. In comparison, the S&P BSE Sensex was down 0.69 per cent at 45,784 points.
In the past three weeks, the stock zoomed 60 per cent on reports that global and domestic players are making a beeline for privatisation process for the company. In comparison, the S&P BSE Sensex was up 5 per cent during the same period.
During initial discussions, players like Essar Shipping, Adani, Great Eastern Shipping, Vedanta, and Dubai Port World have expressed interest in SCI, the report suggested.
SCI has been identified for strategic disinvestment by the Government of India and the Department of Investment and Public Asset Management (DIPAM) of Ministry of Finance has appointed Transaction Advisors, Asset Valuers and Legal Advisors and the due diligence process is in progress. The government has decided to sell its entire 63.75 per cent stake in SCI.
Last month, the company said that it has received information from the Transaction Advisor (TA), M/s. RBSA Capital Advisors LLP, about the proposed generic roadshows and the presentation on disinvestment of SCI with the parties on 11.11.2020, 12.11.2020 ,17.11.2020 and 18.11.2020.
The company’s board, at its meeting held on November 6, 2020, approved the taking of all necessary actions for undertaking and implementing "demerger/hiving off" of non-core assets in line with the direction received from Ministry of Shipping (MOS), Government of India in connection with proposed strategic disinvestment of the Company.
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