The government has invited expressions of interest (EoI) for strategic disinvestment of its 63.75 percent stake in Shipping Corp of India (SCI) along with the transfer of management control by February 13.

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The Department of Investment and Public Asset Management (DIPAM) has also issued a Preliminary Information Memorandum (PIM) inviting Expressions of Interest (EoI) from potential buyers by February 13.

As per the memorandum, here are the eligible entities for the strategic sale:

Any private limited company or public limited company registered under (Indian) Company Act 1956 or 2013

Limited Liability Partnership (LLP) or SEBI registered Alternate Investment Fund (AIF) or

A company or a fund incorporated outside India, which is eligible to invest in India

Management/Employees of SCI (in accordance with the guidelines issued by DIPAM)

As per the memorandum, here are the financial criteria for the strategic sale:

Minimum net worth criteria of Rs 2,000 crore (as per audited balance sheet on March 31, 2020)

The lead member of the consortium should hold a minimum of 50 percent with 1001 cr net worth

Meanwhile, the memorandum said that certain non-core assets will be hived off from SCI. Further, matters such as conditions relating to the bearing of Indian flag, employee protection, retirement policy including VRS, asset stripping, business continuity, lock-in of the shares acquired in the Transaction, shall be specified in the RFP/SPA.

First Published:Dec 22, 2020 12:03 PM IST