Shipping Corp of India Ltd received an approval from the Ministry of Corporate Affairs for its demerger of non-core assets of the company into a new entity, a step seen crucial for the government's plan to divest its stake in the company, as per the company's exchange filing.
"We wish to inform that the Ministry of Corporate Affairs... has sanctioned the scheme of arrangement for demerger of non-core assets of Shipping Corp of India into Shipping Corp of India Land and Assets," the company informed the exchanges on Thursday.
Incorporated on November 10, 2021, "with the object of holding and disposing the non-core assets of Shipping Corp of India," the new company housing non-core assets is known as Shipping Corp of India Land and Assets Ltd.
The revelation caused the company's stock to surge 10%, ending Thursday's trading session at ₹126.50 on NSE.
The largest shipping firm in India is owned by the government, Shipping Corp of India. According to the corporation, its owned fleet consists of offshore supply vessels, bulk carriers, crude oil tankers, product tankers, container ships, and gas carriers.
