SCI demerger: MCA approves demerging non-core assets; stock jumps 7%
SCI demerger: The Ministry of Corporate Affairs (MCA) approved the demerger of the core and non-core assets of the state-owned Shipping Corporation of India (SCI).
SCI demerger: The Ministry of Corporate Affairs (MCA) on Thursday approved the demerger of the core and non-core assets of the state-owned Shipping Corporation of India (SCI), sources told Zee Business. After the demerger, the non-core asset company will list on the bourses separately.
The MCA had in January concluded its final hearing on the demerger of the core and non-core assets of the company that operates and manages vessels servicing both national and international lines.
The Union Cabinet had in November 2020 given in-principle approval for the strategic divestment of the company. In March 2021, the government received multiple bids for privatisation of SCI. However, the demerger process got delayed.
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In May 2022, the company's board of SCI had approved an updated demerger scheme for hiving off the non-core assets of the company to Shipping Corporation of India Land and Assets Ltd (SCILAL) including Shipping House, Mumbai and MTI (Maritime Training Institute), Powai to complete the process of demerging all the non-core assets to the new company SCILAL. As per the balance sheet of SCI, the value of non-core assets held for demerger as of March 31, 2022, stood at Rs 2,392 crore.
Meanwhile, shares of SCI zoomed more than 7 per cent to trade at Rs 124 apiece on NSE. Astha Jain, senior research analyst at Hem Securities, said that from a trading perspective, the SCI's chart pattern is strong and that it can touch the level of Rs 128. "Hold the position with a stop loss of Rs 117," she said. The stock's 52-week range is Rs 151.40 - Rs 85.60.
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