Government Opens Bids To Sell Off Its Entire Stake From Shipping Corporation Of India; Know All About It

At the current market price, the government's stake in the Shipping Corporation of India is valued at about Rs 2,500 crore.

(File Photo/ Getty)

New Delhi: The Finance Ministry on Tuesday invited bids as part of the strategic disinvestment of its 63.75 per cent hold in the Shipping Corporation of India (SCI). Apart from selling the stake from the largest shipping company in the country, the government has also planned to transfer the management control. At the current market price, the government's stake in the Shipping Corporation of India is valued at about Rs 2,500 crore. The Department of Investment and Public Asset Management (DIPAM)  issued a Preliminary Information Memorandum (PIM) inviting the Expressions of Interest (EoI) from potential buyers by February 13, 2021. In November 2019, the Cabinet Committee on Economic Affairs (CCEA), gave the in-principal approval for the strategic divestment of Shipping Corporation. The disinvestment plan was later delayed due to the coronavirus pandemic. In order to manage the disinvestment process, the government has appointed RBSA Capital Advisors LLP as its transaction advisor. As per sources, the competitive bidding method is being used in the disinvestment process. The preliminary information memorandum for inviting the expressions of interest from interested parties can be downloaded from the websites of DIPAM, Shipping Corporation, Ministry of Ports, Shipping, and Waterways, and RBSA Capital Advisors LLP. The government of India has planned to disinvest its entire shareholding from the major shipping company. The government owns 29,69,42,977 equity shares which amount to a 63.75 per cent stake in the company. The Central Government has planned to raise Rs 2.10 lakh crore by disinvesting from different public sector undertakings, financial institutions, public enterprises, and ventures As part of the disinvestment plan, the Central Government plans to raise Rs 1.20 lakh crore from the disinvestment of public sector undertakings and Rs 90,000 crore from stake sales in financial institutions.