Shipping Corporation of India (SCI) on Tuesday filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for raising Rs 1,300 crore. The money will be used for its expansion plan, which includes entry into port and terminal management in joint venture with a global company. SCI has already expressed interest in picking up 10-15% in leading shipbuilders in the country.
?We are targeting to bring the follow-on public offer (FPO) sometime in December, for which SCI has filed DRHP on Tuesday,? shipping secretary K Mohandas told FE, without giving details. The government had last week decided to offload 10% stake in the company while allowing it to issue fresh shares equivalent to another 10% of equity capital.
As per the decision, retail investors and employees of the company would get a 5% discount on the issue price. In addition to this, 0.5% of the issue size would be reserved for employees. The government currently holds 80.12% in SCI and after the follow-on public offer its shareholding would come down to 63.75%.
Meanwhile, the company is crystallising plans to enter into a strategic alliance with a global player to foray in port and terminal management.
?We wish to develop strategic alliance with a global company having a proven track record in port and marine services sector, which will provide a technical competitive edge to both the companies,? a senior SCI official said requesting anonymity.
According to the selection criteria set by SCI, the probable partner should have an annual turnover of more than $10 million during last three years and a net worth of over $20 million. It should be engaged in port and terminal management including LNG terminals for past five years.