On Tuesday, December 22, the Union Finance Ministry invited bids to sell its 63.75 per cent stake in Shipping Corporation of India (SCI), along with the transfer of management control to a private investor, in an asset sale that was delayed due to the coronavirus pandemic.
SCI is India's largest shipping company, and the Centre plans to sell nearly 296.9 million shares valued at about ₹2,500 crores.
For the same, the Department of Investment and Public Asset Management (DIPAM) has also issued a Preliminary Information Memorandum (PIM) for potential buyers. The deadline for submitting initial bids is February 13 and can be submitted individually, or as a part of a consortium, NDTV reported.
The department had received the in-principle approval from the Cabinet Committee on Economic Affairs (CCEA) last year in November. But the plans were delayed due to the coronavirus outbreak.
At current stock prices, SCI's total market value is about ₹4,000 crores, shares up 3 per cent at ₹85.30.
The government has appointed RBSA Capital Advisors LLP and its transaction advisor for the disinvestment process. So far, the Centre has raised ₹12,380 crores through disinvestment (minority stake sale in Central Public Sector Enterprises) and share buybacks this year. The 2020-21 budget has set the disinvestment target of ₹2.1 lakh crore.
Besides, the sale process of Bharat Petroleum Corporation Limited (BPCL) and Air India is is also going on with both companies attracting "multiple" Expressions of Interest (EoI) from potential buyers.
According to the Frontline Hindu report, Vedanta Group and DPW (Dubai Ports World) are potential buyers. While DPW, as a terminal operator, may see some synergies in tying the SCI to its operations, Vedanta may be interested in using its fleet for its mining and energy businesses, the media report read.