Active Stocks
Tue May 28 2024 13:03:07
  1. Tata Steel share price
  2. 175.15 -0.20%
  1. HDFC Bank share price
  2. 1,531.50 0.23%
  1. ITC share price
  2. 429.35 -0.50%
  1. State Bank Of India share price
  2. 832.00 -0.25%
  1. Infosys share price
  2. 1,474.90 0.22%
Business News/ Companies / News/  SCI sale: Govt may invite bids from four companies
BackBack

SCI sale: Govt may invite bids from four companies

As part of its strategic disinvestment plan, the government will transfer its entire shareholding of 63.75% in SCI, along with management control, to a private entity.

The govt expects an equity value of about ₹6,000 cr from the strategic sale.. bloombergPremium
The govt expects an equity value of about 6,000 cr from the strategic sale.. bloomberg

NEW DELHI:Vedanta Resources, Safe Sea Services, JM Baxi and Megha Engineering are among firms that are likely to be asked to place bids for the strategic disinvestment of state-run Shipping Corp. of India (SCI) by next month, officials aware of the development said.

“The process is moving swiftly. Financial bids should be called for by next month; there are many parties that are interested," a senior official said, asking not to be named.

The government is expecting an equity value of about 6,000 crore from the strategic sale, which will see management control transferred to the winning bidder.

Vedanta Resources, Safe Sea Services, JM Baxi and Megha Engineering didn’t respond to queries as of Friday evening. Queries to the finance ministry also did not elicit a response.

As part of its strategic disinvestment plan, the government will transfer its entire shareholding of 63.75% in SCI, along with management control, to a private entity.

The remaining equity of the BSE-listed company is held by the public.

The company’s disinvestment process gained pace after it completed the demerger of its non-core assets into a unit.

SCI’s South Mumbai headquarters Shipping House, a training institute in Powai and some other properties will not be sold but instead, be transferred to the demerged Shipping Corp. of India Land and Assets Ltd.

These assets will be dealt with later after the disinvestment of the shipping business. The unit will also be listed.

The government, which intends to complete the sale within the first half of this financial year, has set itself a disinvestment target of 51,000 crore for 2023-24.

With 59 ships and 3,281 employees, SCI is India’s largest shipping company by capacity, managing these vessels on behalf of various government departments and organizations. The government issued the preliminary information memorandum for the SCI divestment in November 2020, saying the non-core assets that will not form part of the deal will be revealed at the time of issuing the request for proposals.

However, the covid-19 pandemic slowed most disinvestments being undertaken by the government, which also impacted the SCI sale.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

ABOUT THE AUTHOR
Gulveen Aulakh
Gulveen covers both corporate and economy, and policy sections of Mint. She also covers telecom, IT from the corporate side and disinvestment, finance ministry from the economy side. Gulveen finds the rare mix of sectors she covers to be incredibly interesting.
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 14 Apr 2023, 11:32 PM IST
Next Story footLogo
Recommended For You