Shipping Corp Land and Assets listing likely within a month, says DIPAM secretary

The demerger of SCI and SCILAL into separate entities was approved by the Ministry of Corporate Affairs in February last year

The listing of the shares of Shipping Corporation of India Land and Assets (SCILAL) on stock exchanges is likely to be completed within a month as the Board has been set up and hurdles around the stamp duty exemption sorted, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said.

“I think within a month it (SCILAL) will be listed. The Board has been constituted for SCILAL by the ministry of shipping and certain decisions have also been taken by the Maharashtra government. The Cabinet has also given a stamp duty exemption on this demerger. So, from SCI to SCILAL, the lease transfers, the lease name change, et cetera is taking place,” Pandey told Moneycontrol during an interview.

A major hitch to the demerger was related to the waiver of stamp duty by the Maharashtra government, expected to be around Rs 300 crore. The demerger of SCI and SCILAL into separate entities was approved by the Ministry of Corporate Affairs in February 2023 but it has since faced multiple delays.

SCILAL was formed in November 2021 to hold the non-core assets of SCI, which falls under the ministry of ports, shipping and waterways.

As part of the strategic sale process, the government hived off the real estate assets of SCI — Shipping House, a 19-storey building, and the Maritime Training Institute, both in Mumbai — and certain other non-core assets to SCILAL.

Shipping Corp strategic sale

The listing of SCILAL will pave the way for the financial bids for the strategic sale of Shipping Corp. As per the balance sheet of SCI, the value of non-core assets meant for demerger as on March 31, 2022, stood at Rs 2,392 crore.

As part of the divestment of SCI, the central government is looking to sell its 63.75 percent stake in SCI for approximately Rs 3,000 crore. SCI has a fleet strength of 70 vessels and is the largest Indian shipping company, catering to the overseas and coastal transportation of goods.

In November 2020, the Union cabinet gave in-principle approval for the strategic divestment. In December 2020, the Department of Investment and Public Asset Management invited expressions of interest for the disinvestment of the government’s entire stake of 63.75 percent in SCI.