Government has invited bids for selling its entire stake in Shipping Corporation of India (SCI). It is going to sell its 63.75 percent stake in Shipping Corporation of India (SCI) to a private investor, in a key asset sale that was delayed due to the coronavirus pandemic. In a statement, the government said the deadline for submitting initial bids would be Feb. 13. It has plans to sell about 296.9 million shares. Investors can submit bids individually or as part of a consortium.
A ministerial committee which includes Finance Minister, Minister for Road Transport and Highways, and minister representing the respective administrative department
has cleared the decks for the privatization of Shipping Corporation of India (SCI). The committee has approved the expression of interest and preliminary information memorandum as proposed by the Department of Investment and Public Asset Management (DIPAM) which spearheads the government's disinvestment goals.
At current stock prices, SCI's total market value is about Rs 4,000 crore. Shares were up 3 percent at Rs 85.30. The Cabinet Committee on Economic Affairs in November last year gave in-principle approval for the strategic divestment of Shipping Corp. However, the plans were delayed due to the pandemic. The 2020-21 Budget has set a record divestment target of Rs 2.1 lakh crore.
Vedanta and Dubai’s DP World are among the companies said to have expressed interest in acquiring a stake in Shipping Corporation of India (SCI). The roadshow organized by Department of Investment and Public Asset Management (DIPAM) reportedly attracted up to 9 potential investors, including shipping companies from Norway and South Korea.
The total amount raised by government so far stands at Rs 11,006 crore through minority stake sale in CPSEs this fiscal year. The strategic sale process of BPCL and Air India is ongoing and both the companies have received expressions of Interest (EoI) from potential buyers.
