SCI: Sailing uncharted water
Shipping Corporation of India (SCI) share price surged over 19% after Department of Investment and Public Asset Management (DIPAM) Secretary said multiple expressions of interest were received for privatisation of the company and the said transaction will now move to the second stage.
DIPAM, in December, had invited expressions of interest (EoI) for strategic disinvestment of its entire stake of 63.75% in Shipping Corp of India, along with the transfer of management. The last date for submitting the bids was February 13, which was later extended to March 1.
SCI has received multiple Expressions of Interest and the transaction will now move to the second stage.
London-based shipping firm Foresight Group is among the multiple bidders who have put in preliminary bids for buying the government’s entire stake in SCI.
Essar Group, as well as Adani Group, have not bid for Shipping Corp privatisation, the sources added, according to the report.
In November last year, the Cabinet had given in-principle approval for strategic divestment of Shipping Corp and Container Corp of India. However, the plans were delayed due to the pandemic.
In her Budget Speech 2021-22, Finance Minister Nirmala Sitharaman had said, “a number of transactions namely Bharat Petroleum Corp, Air India, Shipping Corp of India, Container Corp of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam, among others, would be completed in 2021-22.”
For 2021-22, the government has set a disinvestment target of Rs 1.75 lakh crore, over five times what it is aiming to raise in the current financial year. In the revised estimates, the target has been set at Rs 32,000 crore for the current financial year.
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