| Despite the Left’s opposition to disinvestment, the government today spelt out its intention to go ahead with the sale of its stake in two public sector companies —Shipping Corporation of India and Tide Water Oil Ltd.
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| Shipping Secretary DT Joseph said on the sidelines of the National Development Council meeting here that the ministry had proposed a stock split before selling 15 per cent stake in SCI through a public offer.
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| “There was a proposal for a bonus issue but we feel the stock split will be better, as a bonus issue will reduce the reserve and surplus capital available to the company,” Joseph added.
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| The company's equity shares have a face value of Rs 10 each and the paid-up capital is Rs 282.30 crore.
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| Shipping ministry sources said the idea was to offer more shares at affordable prices to the public. Thus, apart from splitting the stocks, the price would also get reduced, he added.
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| Officials said with a bonus issue, the dividend outgo of the company would increase. They added that not only the company, but also the ministry was unwilling to increase the burden on SCI, and hence the alternate route was suggested.
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| Heavy Industry Minister Santosh Mohan Deb said the government was considering selling 42 per cent stake in lubricant company Tide Water Oil Ltd, a subsidiary of Andrew Yule Ltd. Oil & Natural Gas Corporation is at present conducting due diligence to acquire the Centre's shares.
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| The selloff plan is part of the ministry's proposal to revamp Andrew Yule. “Why should a tea company sell lubricants. I want it out of my books,” Deb said. He said the final approval for the stake sale would be given by the Cabinet.
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| The minister said resources generated from the sale of stake in Tide Water Oil would be reinvested by Andrew Yule in its main tea business.
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| The company has six tea companies with 12 tea gardens in West Bengal and Assam that are engaged in cultivation, manufacture and processing of tea. These became a part of the company in 1986.
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| Deb said the government was also in favour of Andrew Yule selling its business of making transformers and switchgears. |
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