Shares of Shipping Corporation of India were locked in a five percent upper circuit at Rs 85.17 on the BSE in the morning, reacting to a news report that the government was proceeding with the divestment process.
The stock has shed 40 percent in the past three months, while gaining over 100 percent in the past three years.
The government plans to invite financial bids for the privatisation of Shipping Corp in May, as it looks to sell the state-run company after years of delay, news agency Reuters cited two government officials as saying.
Moneycontrol couldn't verify the report indepedently.
On November 10, 2021, the company incorporated a wholly owned subsidiary Shipping Corporation of India Land and Assets Ltd pursuant to the approval of the Board of Directors based on the concurrence given by the Ministry of Ports Shipping and Waterways and NITI Aayog for hiving off the non-core assets of Shipping Corp as a part of the demerger under the disinvestment process.
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Shipping Corp, which owns and operates bulk carriers and crude oil tankers, had to spin off its non-core assets before the government could sell its 63.75 percent stake, which hit a roadblock over the amount of funds to be transferred to the demerged entity.
The company completed the spinoff in March 2023 after getting regulatory approval late in February. This demerged entity, called SCI Land Assets Ltd, will have to be listed before April 23 and government plans to do that soon, Reuters said.
The government now aims to invite financial bids for Shipping Corp, which owns and operates around one-third of India's total tonnage, by mid-May, as per the report.
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