Centre seeks buyers for its 63.75% stake in SCI1 min read . Updated: 22 Dec 2020, 11:04 PM IST
At SCI’s current market price, the government can raise around ₹2,500 crore from the stake sale
The finance ministry on Tuesday began the process of divesting the government’s entire 63.75% stake in Shipping Corporation of India (SCI) along with management control by inviting expressions of interest from potential bidders.
At SCI’s current market price, the government can raise around ₹2,500 crore from the stake sale.
RBSA Capital Advisers will be the transaction adviser for the divestment process and bids can be submitted until 13 February.
Listing out the terms of the divestment process, the department of investment and public asset management (Dipam) said interested bidders should have positive Ebitda (earnings before interest, taxes, depreciation and amortization) in three of the previous five years and a minimum net worth of ₹2,000 crore. In case of a consortium, the lead member should have a minimum net worth of ₹1,001 crore with at least 50.01% equity in the consortium. The ultimate beneficial owner for any bidder should not be the same as that of any other bidder or of any consortium member, according to Dipam.
In 1992, the government sold 18.51% of its stake in SCI in favour of financial institutions, mutual funds and banks. Later that year, the company was listed on the domestic stock exchanges.
In 1994, the government divested a further 1.37% of its holding in SCI, which operates about a third of India’s shipping tonnage.