Shipping Corporation of India's scheme for demerger of non-core assets approved

The Ministry of Ports, Shipping and Waterways has approved the Shipping Corporation of India's Draft Scheme of Arrangement for the demerger of its non-core assets.

The Shipping Corporation of India Ltd, in a statement to the stock exchanges, said in continuation to the company's announcement on August 4 regarding approval of the draft Scheme of Arrangement for Demerger of Non-Core Assets by the Board of Directors, it has received the approval from the ministry on September 16.

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The scheme mandates the formation or incorporation of a new wholly-owned subsidiary as a 'resulting company' for the demerger of non-core assets of the company.

The state-owned Shipping Corporation of India had reported a 52.94 per cent decline in consolidated net profit to Rs 158.51 crore for the first quarter of the current fiscal.

As the country's premier shipping line, the SCI owns and operates around one-third of the Indian tonnage. It has operating interests in all areas of the shipping business.

The Shipping Corporation of India stock declined Rs 2.45 or 2.14 per cent to Rs 112.15 as compared to the previous session close of Rs 114.60 on NSE.

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