New Delhi: The proposed divestment of Shipping Corporation of India (SCI) may need to wait until the turbulence in the market triggered by Russia’s invasion of Ukraine blows over and investors regain confidence.
According to a report by Bloomberg, SCI Chairperson and Managing Director Harjeet Kaur Joshi on Tuesday said, “Globally markets are facing impact of the crisis, I don’t think this is the right opportune moment.”
The performance of the market will “majorly” drive the timing for the divestment, she said, adding that is not the central government’s view.
The war in Ukraine is sparking supply crunch concerns as Russia is a key supplier of energy, metals and crops. Moves to isolate Moscow has led to a surge in commodities prices from crude, nickel to aluminum and wheat.
Oil freight transportation costs from Russian ports are surging as shipowners avoid business with the nation. Over a thousand seafarers and about hundred ships are stranded near Ukraine as the ports are shut due to the ongoing war.
The war hasn’t affected SCI’s operations as Indian refiners buy very little crude from Russia, Joshi said. The deadline for financial bids for privatising Shipping Corporation was extended from January 18 as bidders sought a more detailed due diligence given the mammoth size of the company, she said, adding the company is in the process of providing data.
SCI is simultaneously demerging its non-core assets as part of the divestment transaction, she said.
Meanwhile, the mega initial public offering (IPO) of Life Insurance Corporation of India (LIC) is all set to be deferred into the next fiscal year amid market swings.