SCI tanks 10% on bourses

Shares of shipping company SCI today settled sharply lower by over 9 per cent.

Shares of shipping company SCI today settled sharply lower by over 9 per cent after the Shipping Ministry raised a red flag over the company’s plans to acquire more vessels,stating the PSU could lose around USD 200 million on the proposed purchases.

Shares of Shipping Corporation of India (SCI) plummeted by 10.45 per cent to a 52-week low of Rs 74.50 during the day.

The scrip closed 9.62 per cent lower at Rs 75.20 on the BSE.

On the National Stock Exchange,the scrip ended at Rs 74.95,down 9.75 per cent from its previous close.

According to an internal document of the Shipping Ministry,SCI “is on the brink of financial collapse” and its plans to acquire 33 vessels would lead to a “debt-trap,almost on the lines of Air India”.

“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 onward. The large and high cost orders are leading to a debt-trap almost on the lines of Air India,” the document said.

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