Govt likely to soon invite financial bids for Shipping Corp: Official

SCI has a fleet strength of 70 vessels and it is the largest Indian shipping company in India, catering to overseas and coastal transportation of goods.

The Union finance ministry is likely to soon invite financial bids for the strategic sale of Shipping Corporation of India (SCI) and is mulling to go ahead without waiting for the listing of its demerged entity, Shipping Corporation of India Land and Assets Ltd (SCILAL), a government official told Moneycontrol on October 4.

“The Department of Investment and Public Asset Management (DIPAM) will be inviting financial bids for SCI soon. There is no issue that will stop DIPAM from inviting bids. As the demerger of its subsidiary is done, there is no point in waiting for its listing,” he said.

Usually, financial bids are invited after the listing of demerged entities, and the valuation of the company follows.

“Other things like the listing of SCILAL are ongoing. Once the financial bids are invited, the valuation gets done,” he said.

The government plans to complete the strategic sale of SCI in this fiscal. The central government is looking to sell its 63.75 percent stake in SCI. It is expected to fetch Rs 3,000 crore. “There is no reason that the SCI strategic sale will not happen this year,” he added.

For the listing of SCILAL, the issue of waiver of stamp duty by the Maharashtra government is expected to be resolved soon. The Ministry of Corporate Affairs approved the demerger of SCILAL in February this year, and the process was completed in March.

The government expects 3-5 players to bid for its stake in SCI. Sources had earlier said that companies such as Vedanta, DP World, and some shipping firms from Norway and South Korea had shown interest in the virtual road shows that were conducted.

SCI has a fleet strength of 70 vessels and it is the largest Indian shipping company in India, catering to overseas and coastal transportation of goods.

As part of the strategic sale process, the government hived off the real-estate assets of SCI — Shipping House, a 19-storey building, and the Maritime Training Institute, both in Mumbai, and certain other non-core assets, to SCILAL. As per the balance sheet of SCI, the value of non-core assets meant for the demerger, as of March 31, 2022, stood at Rs 2,392 crore.