Shipping Corporation of India surged 6% at Rs 59.15 at 12:20 IST on BSE on reports that the company is in discussions with GAIL (India) to form a joint venture company.
Shares of GAIL (India) were unchanged at Rs 438.65.
Meanwhile, the S&P BSE Sensex was down 115.53 points or 0.43% at 26,452.46.
On BSE, so far 2.98 lakh shares of Shipping Corporation of India (SCI) exchanged hands as against average daily volume of 2.11 lakh shares in the past two weeks.
The stock hit a high of Rs 60.10 and a low of Rs 56.70 so far during the day.
According to reports, SCI and GAIL (India) are in discussion to form a joint venture under which the latter will acquire nine LNG ships with almost $3 billion. SCI will run those ships in partnership with GAIL, the reports added. The Memorandum of Understanding is being finalised, according to the reports. Once a joint venture company is formed, SCI will have an option to pick up stake up to 25%, as per reports.
SCI reported a net profit of Rs 49.50 crore in Q1 June 2014 as against net loss of Rs 98.70 crore in Q1 June 2013. Net sales rose 15.23% to Rs 1057.74 crore in Q1 June 2014 over Q1 June 2013.
SCI is present in most segments of shipping, including the container, bulk carrier, tanker and the offshore segment.
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