There Will Be Few Takers For Shipping Corporation Of India, Says Former Chairman
There may not be a large number of bidders to buy out the government’s stake in Shipping Corporation of India Ltd. due to its diversified fleet, the company’s former Chairman and Managing Director SC Hajara said.
“The SCI divestment process is not easy at all as there’s no other firm across the globe has such a diversified fleet except the three giant Japanese corporations—NYK, MOL and K-Line,” Hajara told BloombergQuint in an interview. “We have containers, bulkers, passenger vessels and we also run offshore vessels for government agencies so I’m not very sure whether too many companies either in India or abroad will have interest (to buy) if it’s thrown open.”
However, the veteran who spent nearly four decades at the Navaratna company said the entry of a private player may make the acquisition and sale processes more efficient. “Particularly for second-hand ships, the process can never be as transparent as a global tender for new bidding.”
The 60-fleet transportation conglomerate is one of the five state-run firms the government decided to cede control after a cabinet meeting yesterday. The government will offload its 64.45 percent stake, along with management control in the company.
Shares of the state-run firm fell 5.6 percent intraday compared with the Nifty Index that remained largely unchanged.
WATCH | Private players may bring efficiency to Shipping Corporation of India’s acquisition, says SC Hajara: