'No Firm Development': Shipping Corp Denies Reports Of Oil Tanker JV, Shares Race To Record High

The Shipping Corporation of India (SCI) has dismissed reports that the company is inking a joint venture with a public-sector oil marketing company.

What Happened: On Friday, the company said in a press release that the Government of India has conducted workshops with possible stakeholders, but there have been no negotiations or developments so far.

"Government of India with its plan to strengthen the Country's shipping and shipbuilding industry, had conducted various seminars and workshops with all possible stakeholders in the last few months. As far as SCI is concerned, so far there is no firm development or negotiations," it said.

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Shares of the company skyrocketed on Thursday after the Mint reported that the Union Ministry of Shipping has proposed a joint venture between the SCI and a public sector oil marketing company to manufacture very large oil tankers. 

Indian Oil Corporation Ltd (IOCL), the largest oil marketing company and refiner in the country, was being considered as the preferred partner for the joint venture with SCI, it added.

The company's surge was supported by another report by CNBC Awaaz which said the Maritime Development Fund is expected to receive an allocation of between ₹15,000 crore and ₹20,000 crore in the upcoming Union Budget on July 23.

SCI continued its upward trajectory on Friday with shares hitting a record high even after the firm issued the clarification. 

Price Action: The Shipping Corporation of India was trading 6.74% higher at ₹352.40 on Friday.

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