After putting its non-core asset company SCILAL on the public markets this month, the government is likely to solicit financial bids for the privatisation of Shipping Corporation of India, an official said.
The non-core assets of SCI have been divided off by the government and placed in a new company called Shipping Corporation of India Land And Assets Ltd (SCILAL), which is expected to be worth Rs 2,392 crore as of March 31, 2022.
Every shareholder of the Shipping Corporation of India (SCI) will get one share in SCILAL as part of the demerger process, which will also see SCILAL listed on public markets.
“SCILAL should float on the stock market by June. The privatisation of SCI will then become clear, and financial bids would then be requested, an official told PTI.
Currently, the government owns 63.75 percent of SCI.
The agreement between the Shipping Corporation of India and SCILAL was authorised by the Ministry of Corporate Affairs in February.
The strategic divestiture of Shipping Corp. has received preliminary clearance from the cabinet in November 2020.
For the strategic sale of its whole ownership in SCI as well as the transfer of management control, the Department of Investment and Public Asset Management (DIPAM) issued an invitation for expressions of interest (EoI) in December 2020.
Then, in March 2021, it received many Expressions of Interest for the privatisation of SCI.
Bulk carriers, crude oil tankers, product tankers, container ships, passenger/cargo boats, LPG, and offshore supply vessels are among the vessels owned by Mumbai-based SCI.
The government has set a disinvestment goal for the current fiscal year of Rs 51,000 crore. Through sales of minority stakes, it has collected Rs 4,235 crore so far this fiscal year.