The market capitalisation of the company was Rs 3,922 crore, and the government’s 63.75-per cent stake in the shipping company was valued at Rs 2,500 crore as on market closing price on Monday.
Other conditions of the sale, such as a lock-in period for a new buyer and a business continuity plan, will not be a part of the PIM, but will be included in the share purchase agreement, added the official.
Once the Department of Investment and Public Asset Management receives the minutes of Monday’s meeting, the proposal will be tabled before a ministerial panel that includes the finance minister, Minister for Road Transport and Highways, and minister representing the respective administrative departments, said the official.
The proposal is likely to be tabled before the ministerial panel by December 18.
The company, whose interest spans across segments in shipping trade, had received good response from investors during road shows. The majority stake sale, along with transfer of management control, that’s being targeted for completion this year, will help the government in mopping up divestment receipts at a time when its revenues are strained.