Shipping Corporation of India Bonus Issue proposal will be considered by the board of directors in their upcoming meeting which will be held on May 20, 2008. Bonus shares will be recommended to the administrative ministry i.e. ministry of shipping, road transport & highways, Govt. of India.
SCI was established on Oct. 2, 1961 by the amalgamation of Eastern Shipping Corporation and Western Shipping Corporation. Starting out as a marginal liner shipping company with just 19 vessels, the SCI today has metamorphosed into a giant conglomerate with substantial interests in 10 different segments of the shipping trade. SCI owns and operates about 35% of the Indian tonnage and operates in practically all areas of shipping business servicing both national and international trades.
Shares of the Shipping Coporation of India gained Rs 1.95, or 0.81%, to settle at Rs 243.55.
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Shipping Corporation clarifies on news item
April 21, 2008
With reference to news item appearing in leading financial daily titled Shipping Corporation likely to consider bonus issue Shipping Corporation of India Ltd (SCI) has clarified that the Company is not aware of the source of publication of this news article since SCI has not given any information to the Press on this matter. It is a fact that inter-Ministerial Committee, which considered the case of awarding Navratna Status to SCI, did recommend to the Ministry that issuance of bonus share by SCI, in terms of Department of Public Enterprises guidelines, could be considered. However, SCI being a PSU and as per its Articles of Association, the Board of SCI cannot take a decision to issue Bonus shares without prior approval of the President of India (Government of India). Hence before such a decision is taken, SCI Board has to recommend the matter to the Government for its prior approval. Only after receipt of such approval, the Board has to again recommend the matter to the General Body for its approval. Since no decision is Possible without prior approval of the Government, obviously SCI is not in a position to advise the Stock Exchange about such decision.
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