The Centre has on Tuesday invited bids for the strategic disinvestment of its 63.75 per cent shares in Shipping Corporation of India (SCIL), along with the transfer of management control. The ministry of finance notification said the deadline for submitting expression of interest would be February 13.

The government plans to sell about 296.9 million shares of SCIL, the divestment of which got delayed due to the pandemic this year. Investors can submit bids individually or as part of a consortium.

At current stock prices, SCI's total market value is about Rs 3,915 crore ($529 million).

The Department of Investment and Public Asset Management is working towards concluding the sale in the current financial year as there is good investor interest and the transaction size is not big, PTI had reported recently. 

At the current market price, the government’s stake in the shipping company is valued at Rs 2,500 crore.

The Cabinet Committee on Economic Affairs had in November last year gave in-principle approval for the strategic divestment of Shipping Corp. However, plans were delayed on account of the pandemic.

The FY21 Budget has set an ambitious divestment target of Rs 2.1 lakh crore.

The government has, so far, raised Rs 11,006 crore through a minority stake sale in CPSEs this fiscal year.

A strategic sale process in both BPCL and Air India is ongoing and both have received “multiple” EoIs from potential buyers.



TAGS

Disclaimer: Comments posted here are the sole responsibility of the user and do not reflect the views of THE WEEK. Obscene or offensive remarks against any person, religion, community or nation are punishable under IT rules and may invite legal action.