State-owned Shipping Corporation of India Ltd (SCI) shares rose 5 percent to Rs 85.17 after the Indian government was reported to be planning to invite financial bids for the privatisation of the company next month after years of delay. The development was reported to Reuters by two government officials.
This particular move has come in after multiple years of delay in the sale of the state-run company, Reuters reported.
The government of India led by Prime Minister Narendra Modi, in 2019, announced certain plans for privatisation of a number of state-run companies, including selling its stake in SC. This process had been stalled due to regulatory delays.
The Shipping Corps of India, which engages in operation of bulk carriers as well as crude oil tanker had to separate its non-core assets prior to the government selling off its 63.75 percent stake.
SCI completed the spinoff last month after getting regulatory approval late in February.
The resulting demerged entity, known as SCI Land Assets Ltd, will have to be listed before April 23, which the government aims to have done, very soon.
The government now aims to invite financial bids for SCI, which owns and operates around one-third of India's total tonnage, by mid-May, stated the two officials, who requested anonymity, given the plan has not gone public yet.
A final decision will be taken on April 14 by a panel headed by India's cabinet secretary, they said.
A proposal will be considered that aims to invite initial bids for the sale of the government’s 31 percent stake in Container Corporation of India Ltd, which has been under delays since 2020, mentioned one of the officials.
The finance ministry did not immediately reply to an email seeking comment.