Business

Govt. invites EoI to divest full stake in Shipping Corp.

The Centre holds 63.75% stake in the enterprise and the remaining 36.25% is owned by various others. H. Vibhu  

The Centre on Tuesday invited expression of interest (EoI) for the disinvestment of its entire 63.75% shareholding in the Shipping Corporation India Limited (SCIL) along with the handing over of its management control. Potential bidders have time until February 13 to submit their interest.

The SCIL was incorporated in 1961 and owns a fleet of 59 vessels, including two container vessels, 13 crude oil tankers and eight off-shore supply vessels. It has been a profitable commercial venture and garnered ₹347.5 crore in profit in FY20. The remaining 36.25% stake is jointly owned by mutual funds, banks, insurance companies as well as individuals, according to the pre-bid document. Any private or public limited company registered, or a company / a fund incorporated outside India and eligible to invest in India is eligible to bid either as a sole bidder or as a part of a consortium.

Employees are permitted to participate in the transaction either directly and independently or by forming a consortium. The interested bidder should have a net worth of at least ₹2,000 crore and generated positive EBIDTA for 3 out of the past 5 years. Once the EoIs are evaluated, the Centre will float a ‘Request for Proposal’. Thereafter, financial bids submitted by qualified parties will be opened and evaluated and a winner would be declared.

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Printable version | Apr 17, 2021 6:13:28 AM | https://www.thehindu.com/business/govt-invites-eoi-to-divest-full-stake-in-shipping-corp/article33397008.ece

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