SCI divestment may involve FPO, fresh equity: Shipping secy

The state-owned Shipping Corporation of India's (SCI) proposed follow-on public offer may see a partial stake sale by the government along with issuance of fresh equity, shipping secretary K Mohandas said here today.

"We are looking at various proposals. One of them is part disinvestment and part FPO," Mohandas told newsmen here.

The government currently holds 80.12 per cent in the Shipping Corporation (SCI) and about 18 per cent of the shares are already held by the public.

"We have not decided anything as yet. As far as divestment is concerned, it is totally the government's call. We have not been intimated about any Cabinet decision," SCI chairman and managing director S Hajara said.
     
On being asked about the portion of divestment and fresh equity, Hajara said, "we are aware that SCI is in the list of companies for disinvestment...At an opportune time we will consider (about fresh equity).. We haven't taken any decision yet."
     
The 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.
     
The government is looking at divesting its stake in three shipping-related companies, Cochin Shipyard and Dredging Corp of India, besides SCI, as part of its Rs 40,000-crore divestment target for this fiscal.
    
The government had raised about Rs 25,000 crore last fiscal by divesting its stakes in NHPC, Oil India, NTPC, Rural Electrification Corp.