Shipping Corporation of India surged by over 8 per cent in early trade on the Bombay Stock Exchange on Wednesday, a day after the government allowed the Navratna Public Sector Undertaking to issue fresh equity to the tune of 10 per cent of its paid-up capital.
Buoyed by the development, shares of the company zoomed up 8.12 per cent to hit a one-month high of Rs 181.75 in early trade on the Bombay Stock Exchange (BSE).
On Tuesday, the Cabinet Committee on Economic Affairs had given approval for the sale of a 10 per cent stake in Shipping Corporation of India (SCI) and allowed the company to issue fresh equity to the tune of 10 per cent of the paid-up capital.
The government said disinvestment in SCI is expected to fetch nearly Rs 1,300 crore.
Shares of SCI witnessed a similar movement on the National Stock Exchange (NSE) and soared by as much as 16.48 per cent to Rs 195.70 in morning trade. On the volume front, about 45 lakh shares of the company were traded on the bourses in the morning session.
Meanwhile, the 30-share Sensex index of the BSE was also in positive terrain in early trade on Wednesday, rising by 148.96 points over the previous close to 20,556.67.