Govt to raise Rs.1,300 crore from SCI stake sale
The government on Tuesday approved a proposal for a issue of fresh equity and stake sale in state-run Shipping Corporation of India (SCI).delhi Updated: Oct 05, 2010 21:50 IST
The government on Tuesday approved a proposal for a issue of fresh equity and stake sale in state-run Shipping Corporation of India (SCI).
The transaction according to official estimates would fetch the exchequer Rs.1,300 crore.
Post stake sale, the government's holding in SCI, the country's largest shipping company, will come down to 63.75 percent from the existing 80.12 percent.
The decision was taken at a meeting of the Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh.
The proposed disinvestment plan includes issue of fresh equity of 10 percent by SCI of its existing equity in the domestic market and sale of 10 percent of the existing equity out of the government shareholding, the statement said.
"The government would ensure that its stake does not fall below 51 percent," it added.
Shipping Corporation of India currently owns a fleet of 75 ships, the largest in the country.