Shares in Shipping Corporation of India (SCI) rose 4% to Rs 134.10 on the BSE in intraday trade on Monday after the company set March 31, 2023 as a record date for its split.
“The Board has set March 31, 2023 as the deadline for finalizing the list of eligible shareholders of SCI for the Shipping Corporation of India Land and Assets (SCILAL) rights issue, each shareholder on a 1:1 basis,” the said the company in an exchange. specified in the document.
SCI shares are up 12% over the past month, outperforming the broader market, while the S&P BSE Sensex is up 6%.
The company said the Department of Corporate Affairs approved the Scheme of Arrangement. The board of directors of SCI, DIPAM, MoPSW, SCILAL and the stock exchange have also approved the demerger plan.
The Indian government is strategically disposing of its stake in SCI and transferring management control. In order to facilitate the Company’s divestiture process in an effective, efficient and expeditious manner and to unlock the value of the business and assets, it is considered appropriate to consider the value of the Company’s non-core assets that are not reflected in SCI’s goodwill should be separated from SCI and held in a separate entity, and a separate strategy should be developed to unlock the value of such non-core assets.
On November 10, 2021, SCI formed SCIAL, a wholly owned subsidiary, to divest the Company’s non-core assets as part of the demerger as part of SCI’s strategic divestment process.