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Govt invites bids for STC sell-off

The government on Wednesday invited bids for sale of 65.02 per cent stake in State Trading Corporation to a strategic partner with transfer of management control. The government currently holds 91.02 per cent equity of STC

Ernst and Young has been chosen as the global advisors for the divestment, and the deadline for submitting expression of interest has been set for March 18.

STC is one of India's largest trading companies with a turnover of Rs 10 billion for the year ended March 31, 2001. The company has significant strength in the area of agricultural commodities and other bulk products. It also has two subsidiaries - Tea Trading Corporation and Spices Trading Corporation.

As a prelude to its divestment, STC has already undergone capital restructuring under which it has transferred Rs 400 million out of its reserves of around Rs 4 billion to the government.

Analysts feel that real estate companies as well as trading houses could be interested in picking up STC.

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