Another government company may be listed in the stock market in the month of June. The government is looking to list Shipping Corporation of India Land and Assets Limited (SCILAL), the demerged non-core business unit of Shipping Corporation of India (SCI), by June 7. Various sources aware of the matter told this to Moneycontrol. A senior government official said, “The Shipping Corporation of India (SCI) has already issued 46.5 crore shares of SCILAL to eligible shareholders on April 6. Now after the approval of SEBI (Securities and Exchange Board of India), SCILAL will be listed on the stock exchanges.”
He said that after the listing of SCILAL, the government will invite Expression of Interest (EoI) for sale of its remaining 63.75 per cent stake in SCI. Another official said that SCILAL will be listed only after all the shareholders of the shipping corporation (those holding the company’s shares from April 1, 2021) agree to take SCILAL’s share.
“The shareholders have been given time till the end of May to either hold the newly issued shares of SCILAL or acquire additional shares in SCI by paying a premium,” the official said.
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The government expects 3 to 5 companies to bid for its stake in the shipping corporation. Sources said companies such as Vedanta, DP World, and shipping firms from Norway and South Korea have shown interest in SCI in virtual roadshows held recently.
Based on the current market price, the government will raise over Rs 2,800 crore from the sale of its stake in SCI.
The company’s net sales for the March quarter stood at Rs 1,418.14 crore, up 7.91 per cent from Rs 1,314.16 crore in the year-ago quarter. At the same time, the company’s net profit increased by 175.27 percent to Rs 359.83 crore, compared to Rs 130.72 crore in the same quarter a year ago.
Shipping Corporation of India’s operating profit (EBITDA) rose 32.31 per cent to Rs 498.95 crore in the March quarter. The company has a fleet of 70 ships and is the largest Indian shipping company for overseas and coastal transportation of goods.
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