By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
OOLP Maritime World NewsOOLP Maritime World News
  • Home
  • Maritime News
    • Top stories
    • Global Maritime
    • International Shipping
    • Cruise
    • Ports
    • Security & Piracy
  • Live Marine Traffic
  • Events
  • Company
    • About OOLP
    • Contact us
  • Blog
Reading: India: MCA approves demerger of core and non-core assets of Shipping Corp
Share
Notification Show More
Latest News
China Warship Approaches U.S Destroyer in Taiwan Strait
Global Maritime News
Scenic’s Glen Moroney On Podcast with Dr. Kathy Sullivan
Cruise
Costa Cruises 2023 Summer Deployment Breakdown
Cruise
Schulte Group strengthens its commitment in Japan
Shipping news
Unions strike again across US west coast ports 
Global Maritime News
Aa
OOLP Maritime World NewsOOLP Maritime World News
Aa
Search
  • Home
  • Maritime News
    • Top stories
    • Global Maritime
    • International Shipping
    • Cruise
    • Ports
    • Security & Piracy
  • Live Marine Traffic
  • Events
  • Company
    • About OOLP
    • Contact us
  • Blog
Follow US
© 2022 - All Rights Reserved. OOLP News.
OOLP Maritime World News > Shipping news > India: MCA approves demerger of core and non-core assets of Shipping Corp
Shipping news

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

Last updated: 2023/02/24 at 12:58 PM
81 Views
Share
4 Min Read
SHARE


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.

- Sponsored Ads -

Shares of SCI soared 9.79 per cent to Rs 126.20 apiece after the MCA’s approval. The government’s stake is worth Rs 3,747 crore at this price.

The matter was before the MCA as objections were raised over the Rs 1,000-crore cash transfer to the demerged entity — SCILAL, which will hold SCI’s non-core assets.

The ministry held a meeting on December 29, 2022, to take a final call on the demerger. However, the order was awaited.

“Since the demerger plan has been approved, the Department of Investment and Public Asset Management (DIPAM) is likely to expedite the privatisation process and could soon decide on inviting financial bids,” said two people in know.

According to them, financial bids are expected to be invited in a month or two after the demerged entity gets listed on the stock exchange.

Issue with demerger

In December 2020, DIPAM had invited expressions of interest (EoIs) for strategic disinvestment of the government’s entire stake of 63.75 per cent in SCI, along with the transfer of management.

However, the stake sale plan was delayed following objections to the proposal in the revised demerger scheme of a Rs 1,000-crore cash transfer to SCILAL for the maintenance of SCIs two assets including Shipping House, which is SCI’s registered office, and Maritime Training Institute in Mumbai.

The employees’ union and SCI officials objected to the amount saying it was too high. The original demerger scheme involved the transfer of Rs 450 crore to SCILAL. However, the SCI board approved the revised scheme in May 2022 and asked the MCA to vet the plan.

The company’s privatisation is now likely to be completed in FY24.

Thus far in the current financial year, the DIPAM has raised Rs 31,106 crore from disinvestment. The Union Budget has revised the asset-sale target to Rs 51,000 crore from Rs 65,000 in the Budget Estimates.
Source: Business Standard

- Sponsored Ads -



You Might Also Like

Schulte Group strengthens its commitment in Japan

WÀrtsilÀ partners with Transworld Ship Management on Decarbonisation Modelling

Marco Polo Marine ‘on track for growth’, says RHB

DHT Holdings, Inc. announces acquisition of 2018 built VLCC

admin February 24, 2023
Share this Article
Facebook Twitter Whatsapp Whatsapp LinkedIn Copy Link Print
Previous Article Cunard’s Queen Elizabeth Circa Circus Company Sails 2023 2024 Season
Next Article Step by step – our pathway to decarbonising our operations
- Advertisement -

Latest News

China Warship Approaches U.S Destroyer in Taiwan Strait
Global Maritime News June 4, 2023
Scenic’s Glen Moroney On Podcast with Dr. Kathy Sullivan
Cruise June 4, 2023
Costa Cruises 2023 Summer Deployment Breakdown
Cruise June 4, 2023
Schulte Group strengthens its commitment in Japan
Shipping news June 4, 2023

OOLP maritime news is a portal that gets latest updates and happenings from the maritime & cruise industry across the globe.

Top maritime stories

Global maritime news

International shipping news

Cruise news

Maritime ports

Security and piracy

About OOLP news

Contact us

Live maritime traffic

Events

Blog

Follow US

© 2023 - All Rights Reserved. OOLP News.

  • Cookie Policy
  • Terms & Conditions
  • Disclaimer
  • Privacy Policy

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?