The Maersk Ronneby container ship is loaded at the Container Terminal at the Cochin Port on Willingdon Island in Kerala
Shares in Shipping Corporation of India, the country's largest shipping firm, leapt by as much as a fifth on Wednesday after the cabinet approved a 10 per cent stake sale in the state-run company.
The government also allowed the company, which plans to spend about $4.3 billion over two years to buy 57 new ships, to issue fresh shares for another 10 per cent to part finance the expansion.
Analysts said the approval was a boost in the arm for the company and large investors would be interested in adding the stock to their portfolio, but the jump in prices was a knee-jerk reaction.
Shares in Shipping Corp, which the market values at $1.6 billion, were trading up 15.8 per cent at Rs 194.6 by 11:51 am on BSE. The stock had risen as high as 202.5, its highest since January 2008.
The Indian government plans to raise $8.6 billion through stake sales in the current fiscal year that ends next March.
(Pictures by Reuters)