The government on Tuesday decided to offload 10% in Shipping Corporation of India (SCI) to raise more than Rs 650 crore. The decision also encompasses issuing fresh shares equivalent to another 10% of SCI equity capital, helping the company to garner Rs 650 crore for expansion.
Retail investors and employees of the company will get a 5% on the issue price. In addition to this, 0.5% of the issue size will be reserved for employees, an official release stated after the meeting of Cabinet Committee on Economic Affairs.
The government currently holds 80.12% in SCI and after the follow-on public offer its shareholding will come down to 63.75%. The company recorded a 0.45% rise in its share price at the Bombay Stock Exchange to close at Rs 168 on Tuesday.
SCI has been planning to raise funds from stock markets since sometime now to support its expansion plans, but could not do it in the absence of government nod. Anticipating a green signal from the government, SCI has already appointed IDFC Capital, SBI Caps and ICICI Securities as managers for the follow-on offer.
It has 25 ships on order, eight of which would be delivered this fiscal. The company has earmarked Rs 8,000 crore for another 30 ships that are to be ordered by the end of 2012 and another 40 by 2020.
Cabinet nod on judicial accountability Bill
The Cabinet on Tuesday approved the Judicial Standards and Accountability Bill where the judges of the Supreme Court and high court could be asked to step down if serious charges of misconduct are proved after a scrutiny of a high level committee.
The Bill provides for setting up of a five-member panel to be headed by a former Chief Justice and attorney general