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The government is likely to invite financial bids for the Shipping Corporation of India (SCI) by September this year. The bidding is expected to commence after the process of demerger of the company's non-core assets is completed.

An official told PTI, that the process of the demerger is time-consuming, adding, "we would be ready to invite financial bids in 3-4 months."

The government is hiving off Shipping House and the training institute and some other non-core assets of the company as part of their strategic-sale process.

Last week, on May 6, the company's board approved an updated demerger scheme for hiving off the non-core assets of SCI to Shipping Corporation of India Land and Assets Ltd (SCILAL) including Shipping House, Mumbai, and MTI (Maritime Training Institute), Powai to complete the process of de-merging all the non-core assets to the new company SCILAL.

Last month, on April 22, MoPSW had directed the SCI to I to expedite the process of demerger of non-core assets of SCI to SCILAL and also requested the Board of SCI to review the demerger scheme for demerging the non-core assets of SCI to SCILAL including Shipping House, Mumbai, and MTI, Powai to complete the process of de-merging all the non-core assets to the new company SCILAL on immediate basis prior to the completion of Share Purchase Agreement and suggested certain modification in the Scheme.

SCI in its financial audit report for Q4FY22 and full year of FY22, said, "The implementation of the Scheme including the modified scheme is in process and considering the reiteration by MoPSW and DIPAM to expedite the demerger process, there is a certainty of completion of the process in the near future, and accordingly, the relevant disclosures with continued accounting effects have been considered in the financial statements."

In October last year, SCI had incorporated a 100 % subsidiary, SCILAL for the demerger of non-core assets.

The board of SCILAL approved the demerger scheme on November 16, 2021. While BSE and NSE approved the demerger on March 2, 2022.

As of March 31, 2022, the company's non-core assets amounted to 2,392 crore for demerger.

For full-year FY22, SCI's net profit rises to 865.22 crore compared to 696.09 crore in FY21. While total income increased to 5,098.98 crore against 3,828.85 crore in FY21.

The company's board also announced a dividend of Re 0.33 per equity shares having a face value of 10 each i.e. 3.3% per share, subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company. The dividend would be paid within 30 days from the date of its declaration at the AGM.

On Friday, SCI shares closed at 124.50 apiece down by 3.11% on BSE.

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