Shipping Corporation rises after board OKs demerger of non-core assets

Shares of Shipping Corporation of India (SCI) gained 2.4% to Rs 111.1 after the company's board approved demerger of non core assets into a new company.

The company, in an exchange filing, said that the demerger is aimed at facilitating the government's strategic disinvestment process of the company in an effective, efficient and rapid manner and also to unlock the value of the business assets.

SCI said it has analysed the business and determined the core assets and non-core assets of the company. The non-core assets of the company will be hived off through this scheme with the intent to facilitate an elective and efficient disinvestment of SCI.

The Government of India will hold 63.75% in the resulting company while non promoter group will hold remaining 36.25% stake. The name and details of resulting company shall be finalized once the necessary approvals in this regard are obtained, SCI added in the filing.

The shares of a resulting company would be listed on BSE Limited and National Stock Exchange of India. Shareholders of SCI will get one share in the new company for every share they held in the state-run shipping company.

SCI is the largest Indian shipping company. It is the only Indian shipping company operating: break-bulk services, international container services, liquid/dry bulk services, offshore services, passenger services.

As of 31 June 2021, the Government of India held 63.75% stake in the company.

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