Shipping Corporation was left without moorings on Wednesday, as it drifted lower by 2.6% to Rs 69.40 on NSE, after G E Shipping announced its disinclination for taking up government stake in the shipping major.

On Tuesday, the scrip of the state-run shipper had closed at Rs 71.30.

The fall in Shipping Corporation of India comes after the scrip surged sharply over the last few trading sessions on expectations of positive developments regarding its disinvestment. There have been reports that the Cabinet Committee on Disinvestment would take up the SCI matter soon.

The scrip surged 23.8% to Rs 71.85 on 7 February 2003 from Rs 58 on 27 January 2003 .

However, trends were reversed today following an announcement from Great Eastern Shipping on Tuesday that it has now decided to no longer pursue the disinvestment programme of the Government of India in SCI. Prior to this, the company had said, on 21 November 2002, that in the light of the continued uncertainty on the timing of the sale proceeds, the company had decided not to pursue the acquisition of SCI for the time being. But G E Shipping has now decided to withdraw from the race for SCI altogether.

The government plans to put its 51% stake in the shipping major on the block. The Centre altogether owns 80% equity in SCI. A 3% stake will also be sold to employees. In the end, the government will hold 26% in the shipping giant.

SCI's divestment has already been much delayed. Recent reports suggested that a CCD meeting would be held before 17 February 2003 wherein the divestment of SCI and BPCL would be taken up.

SCI is India's leading shipping company. It operates in two segments - the liner segment and bulk segment. The liner segment includes break-bulk and container transport. The bulk segment covers tankers (both crude and product), dry bulk carriers, gas carriers and phosphoric acid carriers.

The government only recently approved the sale of SCI's 20% stake in its liquefied natural gas venture Greenfield Holding Company to Japanese partner Mitsui.

The company posted improved results last month. For the quarter ended 31 December 2002, the company's net profit more than doubled to Rs 76.22 crore on total income of Rs 614.16 crore (Rs 6.14 billion).