SCI sails smooth in high sea

Shipping Corporation of India (SCI) is the top gainer since opening bell today, hitting a new 52-week high the moment it opened at Rs.92. Volumes have spiked up over 6 times.

The reason for this euphoria on the counter is the probability of further stake sale by Govt of India. The NITI Aayog has prepared a draft document wherein it has urged the Govt to bring down its stake in the company to 38.75% from the present 63.75%. This in turn could bring in Rs.960 crore bounty for the Govt.

The NITI Aayog has recommended that the Govt reduce its stake in multiple tranches, beginning with 26%, after which it should relinquish management control, going on to sell further stake till it brings it down to 38.75%.

It is this stake sale buzz which pushed up the stock price to a new high and for some time, following this rise of SCI, even GE Shipping rose to secure a place among top three  gainers, going up 4.7% to Rs.417.70.