Shipping Corporation shares gain amid development on disinvestment buzz

Shares of Indian public sector undertaking Shipping Corporation of India (SCI) surged around 3 per cent to day's high of Rs 147.40 per share in the early trade on the BSE on Tuesday. Shares gained amid the report of SCI divestment process gaining momentum.  

At 10 am on Tuesday, shares of this PSU were trading at Rs 143.60, a gain of Rs 3.40 or 2.43% on the BSE, while it traded at Rs 143.55, up 2.61% on the NSE around the same time.  

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Promoters hold 63.75% and public has 36.25% stake in this company as per shareholding pattern of SCI for the quarter ended September 2021. Shares of this 'Navratna' have gained over 58 per cent in the last one year as on January 4, 2021.  

The action in the share price comes after sources aware about the development told Zee Business that the Cabinet Secretary will have a discussion to finalise next step required for SCI disinvestment.  

It is learnt that DIPAM has plans to complete the divestment process of the company soon. The Sources told Zee Business that the non-core assets will be demerged and put into a new company, which will be listed separately. "Financial bidders will bid for the core business. DIPAM has sent a proposal related to the disinvestment of SCI to MC," they highlighted. 

Established on October 2nd, 1961, The Shipping Corporation of India is the amalgamation of Eastern Shipping Corporation and Western Shipping Corporation. The SCI owns and operates around one-third of the Indian tonnage, and has operating interests in practically all areas of the shipping business, servicing both national and international trades. 

The SCI was conferred “Navratna” status in 2008 facilitating enhanced autonomy and delegation of powers to the Company towards capital expenditure, formation of Joint Ventures, mergers, etc.