Shipping Corp shares zooms 14%, hit 52-week high on Cabinet nod

MUMBAI: Shares of the government-run Shipping Corporation of India today zoomed over 14 per cent on the BSE, a day after the Cabinet gave its approval to the company for a further public offer.

Enthused with the development, investors rushed for Shipping Corp (SCI) and the scrip jumped by a whopping 25 per cent to hit a year high of Rs 202.50, before ending at Rs 191.85, up 14.13 per cent.

Analysts said investors were upbeat as they expect that post Cabinet nod, the follow-on public offer will be launched in near future.

"The rally in the stocks was news-driven as lot of fresh buying was seen after cabinet's announcement," Geojit BNP Paribas Assistant Vice-President Gaurang Shah said.

Yesterday, the Cabinet Committee on Economic Affairs gave its approval for the sale of government's 10 per cent stake in SCI and allowed the company to issue fresh equity to the tune of 10 per cent of the paid-up capital. The total issue size of the FPO will be 20 per cent.

The government said disinvestment in SCI is expected to fetch nearly Rs 1,300 crore.

On the National Stock Exchange too, the counter performed in a similar fashion and ended the day at Rs 191.85, up 14.20 per cent.

Marketmen also said that the shipping sector was a beaten down sector for some time and now is showing recovery pattern.

Broader market was also firm and the Bombay Stock Exchange's 30-share benchmark Sensex ended at 20,543.08, higher by 135.37 points.