Shipping Corp up 7% on report govt may invite EoIs for divestment this week

The government is likely to invite bids this week for the privatisation of the SCI, with buyers getting time till mid-February to submit their EoIs, according to a report

shipping, coastal shipping — The government is planning to sell its entire 63.75 per cent stake in Shipping Corporation, along with transfer of management control

2 min read Last Updated : Dec 21 2020 | 9:46 AM IST

Shares of Shipping Corporation of India (SCI) rose 7 per cent and hit a 52-week high of Rs 92.70 on the BSE on Monday on report that the government may invite expressions of interest (EoI) for the company this week. The stock of the state-owned shipping company surpassed its previous high of Rs 89.95, touched on December 11, 2020.

According to a PTI report, the government is likely to invite bids this week for the privatisation of the SCI, with buyers getting time till mid-February to submit their EoIs. CLICK HERE TO READ FULL REPORT

The government is planning to sell its entire 63.75 per cent stake in Shipping Corporation, along with transfer of management control.

In the past one month, the stock has zoomed 75 per cent on reports that global and domestic players are making a beeline for privatisation process for the company. In comparison, the S&P BSE Sensex was up 6.5 per cent during the same period.

During initial discussions, players like Essar Shipping, Adani, Great Eastern Shipping, Vedanta, and Dubai Port World have expressed interest in SCI, the PTI report suggested.

SCI has been identified for strategic disinvestment by the Government of India and the Department of Investment and Public Asset Management (DIPAM) of Ministry of Finance has appointed Transaction Advisors, Asset Valuers and Legal Advisors and the due diligence process is in progress. The government has decided to sell its entire 63.75 per cent stake in SCI.

Last month, the company said that it has received information from the Transaction Advisor (TA), M/s. RBSA Capital Advisors LLP, about the proposed generic roadshows and the presentation on disinvestment of SCI with the parties on 11.11.2020, 12.11.2020 ,17.11.2020 and 18.11.2020.

At 09:30 am, SCI was trading 4.5 per cent higher at Rs 90.35 on the BSE, as compared to 0.35 per cent decline in the S&P BSE Sensex. A combined 5.7 million equity shares had changed hands on the counter in first 15 minutes of trading on the NSE and BSE.