Shipping Corporation shares surge 9%, breaking four-session losing streak. Here’s why?
The price action was by strong volume trends as nearly 89 lakh shares changed hands on the NSE around 11:30 a.m.
The Ministry of Finance is likely to invite financial bids for the strategic sale of SCI and is mulling to go ahead without waiting for the listing of its demerged entity, Shipping Corporation of India Land and Assets Ltd (SCILAL), Moneycontrol reported on Wednesday, citing a government official.
“The Department of Investment and Public Asset Management (DIPAM) will be inviting financial bids for SCI soon. There is no issue that will stop DIPAM from inviting bids.
As the demerger of its subsidiary is done, there is no point in waiting for its listing,” the report said quoting the official.
Usually, financial bids are invited after the listing of demerged entities, and the valuation of the company follows, the report said.
“Other things like the listing of SCILAL are ongoing. Once the financial bids are invited, the valuation gets done,” the official said.
The government plans to complete the strategic sale of SCI in this fiscal. The central government is looking to sell its 63.75% stake in SCI.
It is expected to fetch Rs 3,000 crore. “There is no reason that the SCI strategic sale will not happen this year,” the report claimed, quoting this official.
SCI shares have given returns of over 32% in the past 12 months, outperforming the Nifty50 which has given around 12% during this time. The stock is currently trading above its 50-day and 200-day Simple Moving Averages (SMAs).
