MCA approves demerger of core and non-core assets of Shipping Corp

Financial bids may be invited a month or two after SCILAL is listed

The Ministry of Corporate Affairs (MCA) on Thursday issued an official order approving the proposed demerger of the core and non-core assets of Shipping Corporation of India (SCI).

“The corporate affairs ministry sanctioned the scheme of arrangement for demerger of non-core assets (demerged undertaking) of SCI into Shipping Corporation of India Land and Assets (SCILAL) under Section 230-232 of the Companies Act,” SCI told stock exchanges on Thursday.

This could pave the way for the privatisation of SCI, with the government looking to divest its entire 63.75 per cent stake in the national cargo carrier.

Shares of SCI soared 9.79