Shares of Shipping Corporation of India (SCI) moved higher by 4 per cent to Rs 134.10 on the BSE in Monday’s intra-day trade after the company fixed March 31, 2023, as record date for its demerger.
“The board has fixed March 31, 2023, as the record date for ascertaining the list of eligible shareholders of SCI for allotment of equity shares by Shipping Corporation of India Land and Assets Limited (SCILAL) each credited as fully paid up in the ratio of 1:1,” the company said in exchange filing.
In the past one month, the stock of SCI has outperformed the market by surging 12 per cent, as compared to 6 per cent rise in the S&P BSE Sensex.
- Promotional Ads -
The Scheme of Arrangement has been already sanctioned by the Ministry of Corporate Affairs, the company said. The Scheme of Demerger has also been approved by the SCI Board, DIPAM, MoPSW, SCILAL Board and stock exchange.
The Government of India is in the process of strategic disinvestment of its equity stake in SCI together with transfer of management control. To facilitate disinvestment process of the Company in an effective, efficient and rapid manner and also to unlock the value of the business and the assets, it is found appropriate that the Non-core Assets of the Company, the value of which is not getting reflected in the value of business of SCI, should be separated from SCI and should be kept in an independent entity and a separate strategy should be formed for unlocking the value of such Non-core Assets.
On November 10, 2021, SCI had incorporated a wholly owned subsidiary SCILAL to hive off the non-core assets of the company as a part of the Demerger under SCI’s strategic disinvestment process.
The outlook for shipping markets depends to a large extent upon overall global economic activity and upon readiness of the major trading economies in re-integrating with the world markets via increased globalization. National policies backing free movement of goods in the global markets, enable companies to endeavor in building extensively integrated global supply chains, thereby generating more seaborne trade, SCI said in FY22 annual report.
Source: SI Reporter
