Centre Opens Bids To Sell Majority Stake of 63.75% In Shipping Corporation of IndiaPage Visited: 10
The Ministry of Finance on Tuesday, December 22, invited expressions of interest for the strategic disinvestment of its 63.75 per cent stake in the Shipping Corporation of India (SCI), the country’s largest shipping company, along with the transfer of management control. The Department of Investment and Public Asset Management (DIPAM) has issued a Preliminary Information Memorandum (PIM) inviting the Expressions of Interest (EoI) from potential buyers by February 13, 2021. At the current market price, the government’s stake sale in Shipping Corporation of India is valued at about Rs 2,500 crore.
The Cabinet Committee on Economic Affairs (CCEA) in November last year gave the in-principle approval for the strategic divestment of Shipping Corporation. However, the plans were delayed due to the COVID-19 pandemic. The government has appointed RBSA Capital Advisors LLP as its transaction advisor to manage the disinvestment process
The upcoming Union Budget 2021-22 has set a record divestment target of Rs 2.1 lakh crore. So far, the government has raised Rs 12,380 crore through the minority stake sale in Central Public Sector Enterprises (CPSEs) and share buybacks this fiscal year. The strategic sale process of Bharat Petroleum Corporation Limited (BPCL) and Air India is ongoing and both the firms have received multiple expressions of interest from potential buyers.
The Shipping Corporation of India is a central public sector enterprise, under the administrative control of the Ministry of Ports, Shipping, and Waterways, primarily engaged in the transportation of goods, ferrying passengers. The state-run company’s own fleet includes crude oil tankers, bulk carriers, product tankers, passenger-cum[-cargo vessels, container vessels, LPG/ammonia carriers, and offshore supply vessels.
Shares of Shipping Corporation were trading at Rs 86.25, up 4.48 per cent over its previous close on the BSE.