Govt to hive off 10% stake in SCI

NEW DELHI: The Cabinet Committee on Economic Affairs ( CCEA) on Tuesday gave its go ahead to divestment of Shipping Corporation of India ( SCI).

It approved 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. It also approved 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.

The divestment of SCI is expected to generate approximately Rs 1,300 crore.

The government ownership in SCI is currently at 80.12% and after this 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 the 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, which owns 75 ships of 5.10 million dwt.