At least three companies including Essar Shipping, Videocon and Sterlite Industries on Friday bid for acquiring the government's 51 per cent stake in national flag carrier Shipping Corporation of India.
"We have submitted Expression of Interest for acquisition of the government's equity in SCI," an Essar spokesperson told PTI from Mumbai.
However, the re-bid for SCI, done to attract foreign shipping lines, met with lukewarm response with global majors like Qatar Shipping -- which had last time put in an EoI along with Aban Lyod -- staying out of the race.
Rajiv Pal, manager (business development), Qatar Shipping Corporation, told PTI from Doha that the company is not interested in SCI this time.
He, however, did not give reasons for not being interested in bidding for SCI. Great Eastern Shipping Company Ltd, India's third largest shipping company, too did not bid.
Amongst those who threw their hat into the divestment ring for SCI was Videocon, which has opted to go solo.
According to sources in Sterlite, the group has submitted EoI for acquisition of the national flag carrier.
In April, the Cabinet Committee on Divestment decided to start afresh the bidding process for SCI to allow foreign investors to bid solo for the company in line with the government's policy of permitting 100 per cent foreign direct investment in the sector.
Earlier, the foreign companies were allowed to retain only 25 per cent equity in SCI and this had prevented a large number of foreign shippers to participate in the divestment process.
While ministry officials were unavailable for comments, the advisors for SCI divestment, Lazard India and SBI Capital Markets Ltd, refused to say anything on the response to the EoIs, which closed on Friday.
Following the divestment of 51 per cent stake to a strategic partner along with management control, the government equity in the company would come down to about 30 per cent.
The successful bidders would also be required to make an open offer for 20 per cent stake.
The government would further divest its residual equity in SCI through a public offering to ensure continued listing of the company.
SCI is a leading shipping company and practically operates in all areas of the industry. The company has a fleet of 86 ships and recently diversified into the area of LNG transportation.
The shares of the company are listed on stock exchanges at Mumbai, Kolkata, Delhi and Chennai besides the National Stock Exchange.
