Amidst the discussion on the demerger plan of the Shipping Corporation of India by the Ministry of Corporate Affairs, the shares of public sector companies saw an uptick of 5%. The government is contemplating selling of 63% stake in the Mumbai headquartered, vessel servicing company.
The Shipping Corporation of India is a government corporation and is owned by the Ministry of Shipping.
The stocks of the shipping corporation which had opened at Rs. 128.50 recorded at Rs. 133 apiece at 12.25 PM on NSE and Rs. 132.70 on BSE. Its stock was recorded at Rs. 133.70 at 14;32 at NSE an uptick of 4.99%.
The government had received multiple bids for the privatization of the Shipping Corporation of India, however, the merger got delayed. The approval for disinvestment of the Shipping corp was approved in November 2020 by the cabinet. The SCI is the largest India shipping company.
In May this year, the board of Shipping Corp approved the hiving off the non-core assets whose value was recorded 2, at 392 crores in March to Shipping Corporation of India Land and Assets Ltd (SCILLA) including, Shipping House, Mumbai and MTI (Maritime Training Institute), Powai as per the balance sheet of Shipping Corporation of India.
The Shipping Corporation of India was established in 1961. The corporation was awarded ‘navratna’ status in 2008. Shipping Corporation of India claims, that its performance has been rated excellent 18 times under the MoU signed with the government. The corporation owns and operates around one-third of the Indian tonnage. The SCI mans and manages a large number of vessels on behalf of various government organizations.
