10 pc sale in Shipping Corp likely


Prime VIP
New Delhi, June 21

The government may divest up to 10 per cent of its stake in Shipping Corporation of India. "The government in its 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 would be utilised for further acquisition. Asked how much SCI plans to raise from divestment, Hajara said it would depend on the market condition.

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.— PTI