PIB Press Release dated 5 October 2010- Disinvestment of a part of Government equity in Shipping Corp. of India Ltd. through Offer for Sale and raising of additional equity by SCI
The Cabinet Committee on Economic Affairs today gave its approval for:
Issue of fresh equity of 10% by SCI of its existing equity amounting to 4,23,45,365 shares in the domestic market as per SEBI regulations
Sale of 10% of the existing equity out of the Government shareholding amounting to 4,23,45,365 shares in the domestic market as per SEBI regulations
Discount of 5% to retail investors on the issue price.
Reservation of shares of 0.50% of the issue size (i.e. 4,23,454 shares) along with discount of 5% on the offer price for employees of the company
The divestment of SCI is expected to generate approximately Rs. 1300 crore.
Government ownership in SCI is currently 80.12% and after the above offer of sale and further issue of shares, the Government holding will be 63.75%. This disinvestment will develop a roadmap for higher people ownership of this company while ensuring that government equity does not fall below 51%.
SCI is a Navratna company with a consistent track record of profits and dividend. It is the largest shipping company in India owning 75 ships of 5.10 million dwt.
Link is being provided for easy reference to SCI website:http://www.shipindia.com