10% sale in Shipping Corp likely: Chairman

The government may divest up to 10 per cent of its stake in Shipping Corporation of India.

"The government in their list has included Shipping Corporation (SCI) for disinvestment in this fiscal. It is likely to happen.  Disinvestment could be up to 10 per cent," SCI chairman and managing director S Hajara said here on the sidelines a SCOPE conference today.

The government currently holds 80.12 per cent in SCI, while over 10 per cent is held by LIC. The remaining 3.15 per cent is already with the public.

Asked if the company could issue fresh equity, he said, "we don't know. Discussions are on...There could be some possibility but no decision has been taken as yet."

Shipping secretary K Mohandas had said last month that the government was looking at various proposals for SCI, including a follow-on-public offer.

Hajara said a part of the disinvestment proceeds will be utilised for further acquisition. Asked how much SCI plans to raise from divestment, Hajara said it will depend on the market condition.

SCI scrips today closed at Rs 165.50 per share, up 0.88 per cent from on the Bombay Stock Exchange.

SCI at present owns 76 ships of 5.1 million DWT (deadweight tonnage) and has interests in all segments of shipping trade. In addition, it mans and manages 60 vessels of 0.2 million tonnes DWT. DWT is the total weight of the ship including the cargo, crew, fuel etc.

SCI selloff is part of the government's plans to raise up to Rs 40,000 crore this fiscal through disinvestment. Besides SCI, the government is looking at divesting its stake in three shipping-related companies--Cochin Shipyard and Dredging Corp of India.

The government had raised about Rs 25,000 crore last fiscal by divesting its stakes in NHPC, Oil India, NTPC, Rural Electrification Corp.