In Thursday’s intra-day trade on the BSE, shares of the state-owned Shipping Corporation of India (SCI) rose 13% to Rs 128.9 per share. The government’s approval of the company’s core and non-core asset demerger caused the shares to close 9.7% higher at Rs 126.2.
Shipping Corporation Statement
In a filing with the exchange, SCI stated that the Plan of Arrangement for the Demerger of Non-Core Assets of Shipping Corporation of India Limited into Shipping Corporation of India Land and Assets Limited has been approved by the Ministry of Corporate Affairs (MCA). The government had designated a shipping corporation for strategic disinvestment to separate the non-core operations, SCI established a fully owned subsidiary called “Shipping Corporation of India Land and Assets Limited” (SCILAL) on November 10, 2021.
Previous Reports
The Union Cabinet approved the strategic disposal of the Shipping Corporation of India in November 2019. “On December 22, 2020, a preliminary information memorandum (PIM)/expression of interest (EOI) was launched to strategically sell the Government of India’s (63.75% of SCIL) equity position, which represents the complete 100% shareholding.
At the final date and time for submission of Expression of Interest (EoIs), numerous EoIs had been received “Sarbananda Sonowal, the Union Minister for Ports, Shipping, and Waterways informed the Rajya Sabha in December 2021.