SCI to float global tenders for 30 ships

01 Jun 2010

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

Mohandas said the company was looking at various proposals one of them being part disinvestment and part FPO.

The government currently holds a 80.12 per cent stake in SCI and about 18 per cent of the shares are already held by the public.

According to chairman and managing director S Hajara, the company had not decided anything as yet and as far as divestment was concerned it was totally the government's call. He added the company had not been intimated about any cabinet decision.

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 divestment of 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 financial year.