Government to List Non-Core Assets of SCI on Stock Exchanges; Submit tenders for privatizations

The government is likely to seek financial bids to privatize the Shipping Corporation of India after it floated its non-core assets business SCILAL this month, an official said. The Government has spun off SCI’s non-core assets into a separate company – Shipping Corporation of India Land And Assets Ltd (SCILAL) – valued at Rs 2,392 crore as of 31 March 2022.

As part of the demerger process, SCILAL will be listed on the stock exchanges and each shareholder of Shipping Corporation of India (SCI) will receive one share of SCILAL.

“SCILAL is scheduled to be listed on the stock exchange by June. After that, there will be clarity on the privatization of SCI and then financial offers will be solicited,” an official told PTI.

The government currently holds a 63.75 percent stake in SCI.

In February, the Ministry of Corporate Affairs approved the Scheme of Agreement between Shipping Corporation of India and SCILAL.

In November 2020, the cabinet approved the strategic sale of Shipping Corp. basically agreed.

In December 2020, the Department of Investment and Public Asset Management (DIPAM) invited an Expression of Interest (EoI) for the strategic sale of its entire stake in SCI along with the transfer of management control.

Subsequently, in March 2021, the company received several EoIs for the SCI privatization.

Headquartered in Mumbai, SCI’s proprietary fleet includes bulk carriers, crude oil tankers, product tankers, container ships, passenger and cargo ships, LPG and offshore support vessels.

In the current fiscal year, the government has set a divestment target of Rs. 51,000 billion. The company has raised 4,235 crore so far this fiscal year through minority share sales.

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