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| Govt to dilute stake in Cochin Shipyard, SCI, DCI in FY11 |
| Press Trust of India / Mumbai Jan 24, 2010, 19:31 IST |
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The Shipping Ministry is planning to dilute the government's stake in three companies under it -- Cochin Shipyard, Shipping Corp of India (SCI) and Dredging Corp of India (DCI) in the next fiscal (FY11), a top Shipping Ministry official said.
"We have received a proposal from Cochin Shipyard for an IPO to raise funds for expansion. This could be through an issue of fresh equity shares of about 10 per cent. There is no proposal yet for selling Government stake through the IPO," Secretary, Ministry of Shipping, K Mohandas, told PTI.
However, in both SCI and DCI, the government is likely to dilute at least 10 per cent of the stake it holds in each, he said.
The Ministry is evaluating the disinvestment process in SCI and DCI and will take a final call on the issue early-next fiscal (FY11), Mohandas said.
Cochin Shipyard is likely to come out with its IPO first, he said.
While he would not commit a time-frame, it is understood that both the IPO and Government disinvestment process would take place in the next six to nine months.
In March last year, the wholly government-owned Cochin Shipyard had split its Rs 1,000 face-value share into 100 shares of Rs 10 each in order to expand its equity base.
Currently, the government holding in SCI and DCI stands at 80.12 per cent and 78.56 per cent, respectively.
The government is aiming to sell shares in state-owned companies to not only raise funds for the companies but also to fund physical and social infrastructure in the country and to bridge a budget deficit that may widen to the equivalent of 6.8 per cent of the gross domestic product in the year ending March 2010.
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