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Government invites preliminary bids to sell 63.75% stake in Shipping Corp of India

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

By: PTI | New Delhi | December 22, 2020 12:05:43 pm
The Cabinet Committee on Economic Affairs in November last year gave in-principle approval for the strategic divestment of Shipping Corp. However, the plans were delayed due to the pandemic. (Representative image, source: Dhiraj Singh/Bloomberg)

The government on Tuesday invited expressions of interest for strategic disinvestment of its 63.75 per cent stake in Shipping Corp of India along with the transfer of management control.

The Department of Investment and Public Asset Management (DIPAM) has issued Preliminary Information Memorandum (PIM) inviting Expressions of Interest (EoI) from potential buyers by February 13, 2021.

Shares of Shipping Corp were trading at Rs 86.30, up 4.54 per cent over its previous close on the BSE.

At the current market price, the government’s stake sale in Shipping Corp is valued at about Rs 2,500 crore.

The government has appointed RBSA Capital Advisors LLP as its transaction advisor to manage the disinvestment process.

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

The 2020-21 Budget has set a record divestment target of Rs 2.1 lakh crore.

The government has so far raised Rs 12,380 crore through minority stake sale in Central Public Sector Enterprises (CPSEs) and share buybacks this fiscal year.

Strategic sale process of Bharat Petroleum Corporation Limited (BPCL) and Air India is ongoing and both the companies have received “multiple” EoI from potential buyers.

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