Cabinet expected to approve SCI, MOIL disinvestment next month | business | Hindustan Times
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Cabinet expected to approve SCI, MOIL disinvestment next month

business Updated: Aug 29, 2010 13:24 IST

PTI
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The Cabinet is likely to give nod for divesting the government's stake in Shipping Corporation of India (SCI) and Manganese Ore India Limited (MOIL) within the next two to three weeks. "MOIL and SCI would be next disinvestment proposals that would come before the Cabinet.

We expect Cabinet's nod in the next two to three weeks," a source told PTI. The central as well as the state governments of Maharashtra and Madhya Pradesh will offload a total 20 per cent stake in MOIL through an initial public offer.

While the central government will offload its 10 per cent in the company, Maharashtra and MP will dilute 5 per cent each. Earlier, only the Centre, which holds 81.57 per cent in the mini-ratna entity, was considering selling 10 per cent stake. Maharashtra and MP hold 9.62 and 8.81 per cent stake, respectively.

The government has already shortlisted IDBI Capital, Edelweiss Capital and JP Morgan to manage the issue. MOIL apart, the government plans to sell 10 per cent of its stake in Shipping Corporation, which will issue additional shares equal to 10 per cent equity through a follow-on public offer.

SCI currently has 42.34 crore shares, of which the government holds 80.12 per cent and the remaining is with the public. At the current share price of SCI, the stake sale of around 8 crore shares would fetch the government and the company over Rs 1,000 crore.

Disinvestment joint secretary Sidhartha Pradhan had said earlier that he expected MOIL's disinvestment in December this year while stake sale in SCI could be done in March next year.

The government aims to raise Rs 40,000 crore through divestment this fiscal. So far, divestment in Satluj Jal Vidyut Nigam has fetched over Rs 1,000 crore, while the government mopped up nearly the same amount from 10 per cent stake sale in Engineers India FPO. The government is likely to sell its stake in 10 PSUs, including Coal India, MMTC, SAIL, Hindustan Copper, IOC and ONGC this fiscal. Last fiscal, it had raised Rs 25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.