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Shipping Corporation of India shares plummeted over 7 per cent to a 52-week low on the bourses today after the Shipping Ministry raising a red flag over the company’s plans to acquire more vessels, stating that the PSU could lose around $200 million on the proposed purchases.
After a weak opening, the scrip dropped further by 7.21 per cent to a 52-week low of Rs 77.20 on the BSE. Similarly, on the NSE, it fell sharply by 7.22 per cent to a one-year low of Rs 77.05.
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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