Shipping Corporation of India (SCI) has plunged 6% to Rs 78.35 on reports that the Shipping Ministry has raised red flag over the company's plans to acquire fresh vessels, stating the firm stands to lose around $200 million (approx Rs 990 crore) the proposed purchases. The state-run company proposed to invest around Rs 3,700 crore in the ongoing fiscal to acquire 24 new vessels.
"SCI, which has had a profitable run for the last 19 years, is on the brink of a financial collapse...the company will be in the red from this year onwards. The large and high cost orders are leading to a debt-trap almost on the lines of Air India," reports suggest.
The shipping company posted net losses of Rs 6 crore each in the previous two quarters (March and June 2011).
The stock hit a 52-week low of Rs 77.15 after opening at Rs 81.25 on the National Stock Exchange (NSE). A combined 265,303 shares have changed hands till 1011 hours.
