Shipping Corporation of India Sets March 31 as Record Date for Demerger, Shares Jump 4%

Shipping Corporation of India fixes record date for scheme of arrangement for demerger.

Shipping Corporation of India (SCI) shares 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 the demerger.

“The board has set March 31, 2023, as the record date for finalizing the list of eligible shareholders of SCI for the rights issue of Shipping Corporation of India Land and Assets (SCILAL), each shareholder on a 1:1 basis,” the company said in an exchange. indicated in the document.

Shares of SCI have risen 12% in the past month, outperforming the broader market, while the S&P BSE Sensex has gained 6%.

The company said the Ministry of Corporate Affairs had 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 divesting its stake in SCI and transferring management control. To facilitate the company’s divestment process in an effective, efficient and expeditious manner and to unlock the value of the business and assets, it is considered appropriate that the value of the company’s non-core assets, which are not reflected in the business value of SCI, should be kept separate from SCI, and should be retained in a separate entity and a separate strategy should be formed to unlock the value of such non-core assets.

On November 10, 2021, SCI established SCILAL, a wholly-owned subsidiary, to divest the company’s non-core assets as part of the demerger under SCI’s strategic divestment process.

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