Its imminent divestment time and again brings gains for SCI, on Thursday the counter was boosted further by prospects of dividend as well.
In fact, a board of directors meeting will be held on 10 March 2003 to consider a proposal for interim dividend.
By 12:30 IST, the scrip of state-run shipping major Shipping Corporation if India leaped up 4.27% to Rs 61. Relatively huge volumes of over 128,000 SCI shares were registered on BSE till then.
But the scrip was not all of positive recently. Between 4 February and 5 March 2003, SCI lost 17.60% to Rs 58.50 from Rs 71. That fall precipitated on reports that the divestment ministry had dropped plans to privatise the company in the current fiscal (ending 31 March 2002).
But hopes that the government will announce a huge interim dividend revived the scrip today. A meeting of the board of directors of SCI will be held on 10 March 2003 to consider interim dividend for the year 2002-2003 if any, along with other agenda items. There was also talk in the market that the government is likely to sign a shareholders agreement as a prelude to the company's privatisation.
SCI's divestment continues to be on the governments' agenda. And now, players feel it is imminent because of the huge dividend prospect. It is being remembered that the government had paid a huge interim dividend in VSNL as well, just before the company's divestment.
Earlier, GE Shipping announced that it would no longer pursue the divestment programme of the Government of India in SCI.
SCI's divestment has been invariably hitting roadblocks as the Centre seems edgy about divestment in the current fiscal, fearing poor valuation. Earlier, former shipping minister Ved Prakash Goyal had said that 90% of the privatisation process in SCI was already complete and the stake sale would be effected by December 2002 or January 2003. There were reports, too, that the government was to invite financial bids to sell equity stake in the company earlier, but lower stock price compelled the government to postpone the sell-off.
Recently, divestment minister Arun Shourie gave the green signal for the acquisition of two new very large crude carriers by the company in view of the uncertainty over the divestment of the state-run company.
The government owns 80% equity in the shipping giant and plans to sell 51% stake to a strategic investor. 3% stake will be sold to employees. The government plans to retain 26% stake in the company.
SCI is India's leading shipping company. It operates in two segments - the liner segment and bulk segment. The liner segment includes break-bulk and container transport. The bulk segment covers tankers (both crude and product), dry bulk carriers, gas carriers and phosphoric acid carriers.
The government only recently approved the sale of SCI's 20% stake in its liquefied natural gas venture Greenfield Holding Company to Japanese partner Mitsui.
For the quarter ended 31 December 2002, the company's net profit more than doubled to Rs 76.22 crore on total income of Rs 614.16 crore (Rs 6.14 billion).
More Hot Pursuits
