December 7, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

January 18 deadline for SCI financial bids

The government has set January 18 as the cut-off date for submission of financial bids for its stake in , setting the stage for the privatisation of the company before the end of this fiscal year, according to sources in the know.

A formal request for proposal and draft share purchase agreement along with the bid deadlines was communicated to prospective bidders for the state-owned vessel operator over the weekend, these sources said. The government owns a 63.75% stake in Shipping Corporation of India (SCI). The successful buyer will also have to make an open offer for an additional 26% share to the public shareholders of the company as per takeover regulations.

Emailed queries to the government’s department of investment and public asset management did not elicit any response until press time. Shares of Shipping Corporation of India climbed 8.78% on Thursday to close at `140.55 a piece, giving the company a market capitalization of Rs 6,546.81 crore. This could take the cost of an acquisition for a bidder to around Rs 5,879 crore or $791 million, including the cost of buying shares in the open offer.

The company informed the stock exchanges on November 17 that it had formalized the demerger of its non-core assets into a separate company, Shipping Corporation of India Land and Assets, an important step towards its privatization.

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