Shipping Corporation of India Land and Assets Set to Debut on March 19

Shipping Corporation of India Land and Assets Limited (SCILAL), a demerged entity of Shipping Corporation of India (SCI), will debut exchanges on March 19, 2024, under the T2T category. As per reports, SCILAL has obtained the final approval for listing and trading its 46 crore shares, valued at Rs 10 each, from both the BSE and NSE.

Established in November 2021, SCILAL was created to manage the non-core assets of SCI, overseen by the Ministry of Ports, Shipping, and Waterways. In line with its strategic divestment strategy, the government transferred SCI’s real estate holdings, including the Shipping House, a 19-storey building, and the Maritime Training Institute, both situated in Mumbai, along with other non-core assets, to SCILAL.

A significant hurdle to the demerger process stemmed from the necessity for the Maharashtra government to waive stamp duty, which was anticipated to be approximately Rs 300 crore. Although the Ministry of Corporate Affairs approved the demerger of SCI and SCILAL into separate entities in February 2023, the process had encountered several delays since then.

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

It is important to note that the stocks are only permitted for delivery-based trading under the T2T category, and investors or traders are prohibited from engaging in intra-day transactions. This measure ensures stability and discourages speculative trading, promoting long-term investment perspectives.

Stock Performance

At the start of the day, SCI’s stocks opened at Rs 203 apiece on the BSE, reaching intraday highs and lows of Rs 208 and Rs 200, respectively. Currently, the stocks are trading at Rs 202.25 apiece, representing a gain of 1.94% on the BSE. Additionally, the stocks have generated an impressive return of around 57% in the past year and 88% in the past three years. The SCI’s current market capitalisation stands at Rs 9413 crore.

Company Overview

Shipping Corporation of India Limited is an India-based shipping company. The company is involved in the business of transporting goods and passengers. Its segments include Liner, Bulk Carrier, Tanker, and Technical & Offshore. The Liner segment includes break-bulk and container transport. The Bulk Carriers segment comprises dry bulk carriers. The Tankers segment includes crude and product carriers, as well as gas carriers. The Technical & Offshore segment includes the company’s owned offshore vessels and vessels managed on behalf of other organizations, including passenger vessels, research vessels, and offshore vessels, along with income from technical consultancy services. The company offers a range of services, including tankers, bulk carriers, containers, offshore, breakbulk, coastal & passenger services, chartering, and others. Its owned fleet includes bulk carriers, crude oil tankers, product tankers, container vessels, passenger-cum-cargo vessels, LPG carriers, and offshore supply vessels.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.