Mumbai: The follow-on public offer (FPO) of state-owned Shipping Corporation of India (SCI) will run from November 30 to December 3, offering the investing public equity in a price band of Rs135 to Rs140 per Rs10 face value share.
The FPO of 168.96 million shares represents a 10% disinvestment of the Indian government's 80.12% shareholding in the national carrier, considered a 'navratna' (one of nine jewels in the government's crown). A quota reserved for employees and retail individual bidders will provide shares at a 5% discount to the eventual cut-off price.
SCI, which currently has 78 vessels in its fleet, representing roughly 35% of the Indian fleet, has on order 30 ships aggregating more than 2 million dwt in virtually every segment of shipping. Its Bulk Carrier and Tanker division alone is larger in size than any Indian private sector shipowner.
SCI's liner division has scripted a remarkable turnaround, converting a Rs2.25 billion ($49.5 million) loss in the financial year 2009-10 into a Rs710 million profit at the half-way mark of fiscal 2010-11.
The FPO is one of several partial sell-offs of public sector enterprises, being held by the government to raise funds for poverty alleviation and infrastructure-building schemes. In all these public issues, the government will continue to hold management control of the enterprise concerned. [30/11/10]
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