Shipping Corp surges 19% as govt gets multiple bids for privatisation

Shares of privatisation bound (SCI) surged over 19 per cent in intra-day trade on Tuesday to hit a fresh 52-week high of Rs 123.55 on the BSE after Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said the government has received multiple bids for the company.

DIPAM, in December, had invited expressions of interest (EoI) for strategic of its entire stake of 63.75 per cent in Shipping Corp of India, along with the transfer of management. The last date for submitting the bids was February 13, which was later extended to March 1.

“Multiple Expressions of Interest have been received for privatisation of Limited. The transaction will now move to the second stage,” Pandey tweeted.

According to a PTI report, London-based shipping firm Foresight Group is among the multiple bidders who have put in preliminary bids for buying the government’s entire stake in SCI.

The sources have told PTI that Foresight Group has bid in a consortium with Belgium-based Exmar NV and Dubai-based GMS.

Essar Group, as well as Adani Group, have not bid for Shipping Corp privatisation, the sources added, according to the report.

In November last year, the Cabinet had given in-principle approval for strategic divestment of Shipping Corp and Container Corp of India. However, the plans were delayed due to the pandemic.

In her Budget Speech 2021-22, Finance Minister Nirmala Sitharaman had said, “a number of transactions namely Bharat Petroleum Corp, Air India, Shipping Corp of India, Container Corp of India, IDBI Bank, BEML Ltd, Pawan Hans, Neelachal Ispat Nigam Ltd, among others, would be completed in 2021-22.”

For 2021-22, the government has set a target of Rs 1.75 lakh crore, over five times what it is aiming to raise in the current financial year. In the revised estimates, the target has been set at Rs 32,000 crore for the current financial year.

At 10 am, shares of SCI wwere trading 17 per cent higher at Rs 121.95 as against a 1 per cent rise in at 50,349.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link