State-owned Shipping Corporation of India (SCI) plans to invest about $1 billion every year in capital expenditure over the next three years, according to S. Hajara, chairman and managing director of the company.
The company hopes to raise $3 billion needed for its expansion through internal accruals and debt, he added. SCI was the latest public sector undertaking to come out with a follow-on public offer (FPO) recently.
Its issue, which closed on Friday, was over-subscribed by about five times. The company is expected to price its shares at the top end of the band of Rs.135 to Rs.140.
The company planned to raise about Rs1,200 crore from the FPO, which will see the government off-load a 10 per cent stake in the company. The offer also saw the company issue 10 per cent of fresh equity.
According to Hajara, India's flag gross tonnage is expected to double to 20 GT over the next seven years.