Mazagon Dock, GRSE, other shipping stocks rise up to 3% after report says govt set to approve Rs 65,000-crore schemes

Mazagon Dock, GRSE, other shipping stocks rise up to 3% after report says govt set to approve Rs 65,000-crore schemes

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The shares of shipping companies recorded notable rise on August 21 after a report claimed that the government is set to approve strong budget outlay for three schemes to boost the sector.

Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers (GRSE) and Shipping Corporation Of India (SCI) shares gained up to 3 percent.

The central government is planning to clear schemes worth nearly Rs 65,000 crore for the shipping sector in the next 20-25 days, Zee Business reported citing people familiar with the matter. Out of this, Rs 20,000 crore will likely be allotted for Shipbuilding Financial Assistance Policy.

Another Rs 25,000 crore will likely be allotted to the Maritime Development Fund (MDF), while the rest will be allotted for shipbuilding clusters, the report added. Finance Ministry’s Expenditure Finance Committee (EFC) has already granted approvals for the schemes, which have now been sent to the Cabinet for approval, the report further said.

Moneycontrol couldn't independently verify the report.

Earlier, while delivering her Union Budget speech on February 1 this year, Finance Minister Nirmala Sitharaman had announced the setting up of the MDF to boost India’s maritime sector.

GRSE shares gained over 3 percent to hit a day's high of Rs 2,643.50 apiece. The stock has nearly doubled in the past six months. It currently has a P/E ratio of over 52.

Mazagon Dock Shipbuilders shares gained 2.5 percent to hit an intraday high of Rs 2,841.40 apiece. The stock has gained nearly 32 percent in the past six months. It currently has a P/E ratio of over 55.

Shipping Corporation Of India (SCI) shares gained over 2 percent to hit an intraday high of Rs 219 apiece. The stock jumped around 34 percent in the past six months. It currently has a P/E ratio of around 11.5.

Also read: Our LIVE blog on stock market updates

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