The Indian government today invited bids to sell its 63.75% stake in Shipping Corporation of India (SCI) to a private investor, in a key asset sale that was delayed due to the coronavirus pandemic.
India govt opens bids to sell a majority stake in Shipping Corporation of India
In a statement on Tuesday, the government said the deadline for submitting initial bids would be Feb. 13.
The government plans to sell about 296.9 million shares, its entire stake of 63.75%, according to a newspaper advertisement Tuesday. Investors can submit bids individually or as part of a consortium.
At current stock prices, SCI’s (Shipping Corporation of India) total market value is about ₹4,000 crore. Shares were up 3% at ₹85.30.
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 ₹2.1 lakh crore.
The government has so far raised ₹11,006 crores through minority stake sale in CPSEs this fiscal year. The strategic sale process of BPCL and Air India is ongoing and both the companies have received “multiple” expressions of Interest (EoI) from potential buyers.