Govt may invite expressions of interest for Shipping Corporation this week

The government is likely to invite bids this week for the privatisation of Shipping Corporation of India, with buyers getting time till mid-February to submit their expressions of interest (EoIs), said an official.

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

“The Preliminary Information Memorandum will be issued this week and bidders will have time till mid-February to submit their EoIs,” the official told PTI.

The Department of Investment and Public Asset Management is working towards concluding the sale in the current financial year as there is good investor interest and the transaction size is not big. Shares of Shipping Corp 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 the shipping company is valued at Rs 2,500 crore.

The Cabinet Committee on Economic Affairs had in November last year gave in-principle approval for the strategic divestment of Shipping Corp. However, plans were delayed on account of the pandemic. 

The FY21 Budget has set a record divestment target of Rs 2.1 trillion.

The government has, so far, raised Rs 11,006 crore through a minority stake sale in CPSEs this fiscal year. 

A strategic sale process in both BPCL and Air India is ongoing and both have received “multiple” EoIs from potential buyers.