Shipping Corporation Disinvestment Evinces Interest From Vedanta, DP World Among Others

Vedanta and Dubai’s DP World have expressed interest in acquiring a stake in Shipping Corporation of India (SCI), The Economic Times reported citing people familiar with the matter.

The roadshow organised by DIPM reportedly attracted up to 9 potential investors, including shipping companies from Norway and South Korea.

While DP Dubai is among the top global players in cargo terminal operations, Vedanta is looking for captive fleet organisation that could support its mining and energy business.

The Union Cabinet on 20 November 2019 had accorded ''in-principle'' approval for strategic disinvestment of Government of India's shareholding of 63.75 per cent in SCI along with transfer of management control to a strategic buyer.

In November, the company’s board sought bids for a consultant to undertake de-merger/disposal of its non-core assets (real estate) ahead of its stake-sale and to carry out corporate restructuring for better operational performance.

SCI is largest Indian shipping company with a fleet strength of 59 vessels at present. It runs a fleet of 59 ships, including crude oil tankers, very large crude carriers, petroleum product carriers, liquefied petroleum gas carriers, bulk carriers, container ships and off-shore support vessels.

SCI owns and operates around one-third of the Indian tonnage, and has operating interests in practically all areas of the shipping business; servicing both national and international trades.