Govt looking to exit Shipping Corporation, may invite bids for sale this week
BusinessToday.In December 20, 2020
The Modi government is likely to open invite bids for privatisation of Shipping Corporation of India in the coming week and buyers will be given time till mid February to submit EoIs, an official said. Government plans to sell entire 63.75 per cent stake in Shipping Corporation along with transfer of management control.
"The Preliminary Information Memorandum (PIM) will be issued this week and bidders will have time till mid February to submit EoI," the official told PTI.
The Department of Investment and Public Asset Management (DIPAM) is working towards concluding stake sale in the current financial year due to good investor interest in the market.
Shipping Corp stock closed at Rs 86.55, up 3.22 per cent over the previous close on the BSE on Friday.
At the current market price, the government's stake in Shipping Corp is valued at Rs 2,500 crore.
In November 2019, Cabinet Committee on Economic Affairs gave in-principle nod for stake sale in Shipping Corp. However, the divestment plan was delayed due to the pandemic. The government announced a record divestment target of Rs 2.1 lakh crore.2020-21.
However, it has managed to raise Rs 11,006 crore through minority stake sale in CPSEs this fiscal year. Strategic sale process of BPCL and Air India is ongoing and both the companies have received "multiple" expressions of Interest (EoI) from potential buyers.
With PTI inputs