State-run Shipping Corporation of India (SCI) plans to raise Rs 2,600 crore debt this fiscal to buy additional 29 vessels.
This will lead to an addition of 1.72 million DWT (dead weight tonnage) to its existing fleet. The order includes four crudetankers, seven product tankers, 10 bulk carriers and eight offshore vessels.
At the end of June 2010 quarter, the company had a debt to equity ratio of 0.43, which after the acquisition of these vessels, will rise to 1.
?We have tied-up funds for some of these vessels and will be raising a debt to the tune of Rs 2,600 crore by the end of this financial year for adding 29 vessels,? said BK Mandal, director, finance, SCI.
SCI expects to add 14 more ships this fiscal comprising five (large range) and one product tankers, two LR 11 product tankers, four Aframax tankers and three anchor handling tug and supply vessels.
With 14 new vessels, the total-owned fleet of the company will stand at 74 vessels of 5.01 DWT. The company has authorised capital of Rs 450 crore and reserves and surplus of Rs 5,913.55 crore. It has Rs 2,300 crore as cash in hand. ?We have a strong financial history and our balance sheet is under leveraged. After the government of India conferred the Navaratna status to our company, financing debt has become all the more easier for us,? said S Hajara, CMD, SCI.
The company is also interested in ship manufacturing. ?A greenfield shipyard will be difficult to get into. We are looking at joining hands with a shipyard,? added Hajara.