Government may invite EoIs for Shipping Corporation of India sale this week

NEW DELHI: The government is likely to invite bids for privatising Shipping Corporation of India this week and buyers will have time till mid February to submit EoIs, an official said. 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 (PIM) will be issued this week and bidders will have time till mid February to submit EoI," the official told .

The Department of Investment and Public Asset Management (DIPAM) 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 Shipping Corp is valued at Rs 2,500 crore.

The Cabinet Committee on Economic Affairs in November last year gave in-principle approval for the strategic divestment of Shipping Corp. However, the plans were delayed due to the pandemic. The 2020-21 Budget has set a record divestment target of Rs 2.1 lakh crore.

The government has so far raised Rs 11,006 crore through minority stake sale in CPSEs this fiscal year. Strategic sale process of BPCL and Air India is ongoing and both the companies have received "multiple" expressions of Interest (EoI) from potential buyers.