Shares of state-owned Shipping Corporation of India (SCI) surged 8.6 per cent to Rs 124.9 per share in Thursday’s intra-day trade on the BSE after reportes suggested that the government has approved the demerger of the core and non-core assets of the company.
At 1:35 PM, SCI shares were up 7 per cent to Rs 123 apiece as against a flat S&P BSE Sensex. A combined 4.8 million shares had changed the hands on the BSE and NSE till the time of writing of this report.
According to media reports, the Ministry of Corporate Affairs, on Thursday, approved the revised demerger plan of Shipping Corporation of India, wherein Rs 1,000 crore will be transferred to the non-core assets.
SCI had been identified for strategic disinvestment by the government. On November 10, 2021, SCI had incorporated a wholly owned subsidiary ‘Shipping Corporation of India Land and Assets Limited’ (SCILAL) to hive off the non-core assets of the company as a part of the Demerger under SCI’s strategic disinvestment process.
The Scheme of Demerger has been approved by the SCI Board, DIPAM, MoPSW, SCILAL Board and stock exchange. The Demerger Scheme had been filed with Ministry of Corporate Affairs (MCA) for approval.
SCI, along with NMDC Steel Ltd, BEML, HLL Lifecare, Container Corporation of India, RINL or Vizag Steel, and IDBI Bank, are the entities where the Centre is looking to divest stake to raise Rs 65,000 crore in FY24. The government has pegged divestment target of Rs 51,000 crore for the next fiscal year. The target for FY24 is at par with the revised mop-up estimate of Rs 50,000 crore for FY23.