The rise in price has been accompanied by spurt in volumes. In February-end, 48,000 shares were traded at Rs 5.80. Since then, the average daily volume has been in the range of 40,000 shares. On March 20, 2.50 lakh shares changed hands at Rs 10.75 on the Mumbai Stock Exchange.

According to sources, the market expects Stena Offshore of Mauritius, Peerless Shipping's foreign partner, to hike its stake in the company to 20 per cent from 8.19 per cent at present. Hence, the spurt in price.

When contacted, company sources denied that their foreign partner had initiated any move to pick up an additional stake in Peerless Shipping. However, they confimed that Stena had recently appointed an alternate director onPeerless Shipping board and that the Mauritian firm had opened an office in Mumbai.

Stena renders technical and financial support to Peerless Shipping. Peerless General Finance holds a 49 per cent stake in Peerless Shipping while Peerless Abhasan and Peerless Financial Services Ltd each hold one 1 per cent in the company.

For Peerless Shipping, fiscal 1997-98 had been a trying year with volume of business dropping and a top company official being tried for FERA violations.For the half year ended September 1997, Peerless Shipping had announced a 22 per cent drop in net profit to Rs 3.77 crore on a 4 per cent drop in total income to Rs 42.40 crore.