NEW DELHI: Paving the way for yet another privatisation of a state-owned company, the government has invited Expressions of Interest (EoI) for the strategic sale of its 63.75 per cent stake in Shipping Corp of India (SCI).
In a preliminary information memorandum (PIM) issued on Tuesday, the Department of Investment and Public Asset Management (DIPAM) said that the deadline for submitting bids would be February 13 and the investors can either choose to bid for it individually or as part of a consortium. Buyers can submit their queries to the transaction adviser by January 23, according to the memorandum.
It may be noted that non core assets of the company are being hived off and will not be a part of the sale. The bidder must have a net worth of Rs 2,000 crore, and should have reported positive operating profit in at least three out of the last five financial years.
Any public or private company, SEBI-registered Alternative Investment Fund, or a company or fund incorporated outside India, is eligible to bid for the company. The government has appointed RBSA Capital Advisors LLP as its transaction advisor to manage the disinvestment process.
SCI is the largest Indian shipping company with a fleet strength of 59 vessels at present and operates around one-third of the Indian tonnage, servicing both national and international trades. At the current market price, the government’s stake sale in SCI is valued at about Rs 2,500 crore.