Shipping Corporation expects to file DRHP this quarterOctober 6th, 2010 - 6:12 pm ICT by IANS
Kolkata, Oct 6 (IANS) State-owned Shipping Corporation of India expects to file the draft red herring prospectus (DRHP) for its issue of fresh equity and part disinvestment of government stake within the current quarter (Oct-Dec) of this fiscal.
“There will be 10 percent disinvestment by the government of India and 10 percent float of fresh equity. After this government holding will be 63.75 percent. Both will be done together. It will done in this fiscal only. DRHP will be filed in this quarter,” Chairman and Managing Director S. Hajara told reporters here Wednesday.
He said the timeline would be drawn after consultation with the ministries of disinvestment and shipping.
“The first kick-off meeting regarding this has taken place September 21,” Hajara said.
He said the price band has not been decided yet.
The company has a cash reserve of over Rs.2,500 crore and “This FPO (follow-on public offer) will boost our internal resource.”
The Cabinet Committee on Economic Affairs (CCEA) Tuesday approved issue of fresh equity and part-disinvestment of government stake in the company. The government’s stake in the company now is 80.12 percent.
“The money gathered will be used for our very ambitious acquisition programme. We have 28 ships on order 11th Plan envisaged ordering 62 vessels of which we have ordered some 30. There are still around 30 vessels to be ordered,” he said.
The present tonnage of the company is little over 5 million DWT (dead weight tonnage). “We hope it will grow substantially over the next 3-5 years.”
About the company’s plans to form joint-venture with Coal India Limited (CIL), he said: “We are seriously looking at forming joint-venture with CIL that will basically cater to their (CIL) need of import of coal.”
Hajara hopes it would be a 50:50 joint venture.
At present, the company has seven directors including two government directors and seven other independent director.
Process is on to appoint another independent director and another working director and both are expected to happen very soon.
- Shipping Corp going slow on new vessel orders - Nov 15, 2011
- Govt to raise Rs.1,300 crore from SCI stake sale - Oct 05, 2010
- BHEL FPO on hold, profit rises 14.3 percent in 2011-12 - Apr 03, 2012
- Shipping Corporation to get 30 more vessels by 2015 - Jun 26, 2010
- Hindustan Copper not to raise fresh equity through FPO - Sep 20, 2011
- ONGC likely to divest five percent by March 2011 - Nov 18, 2010
- Shipping Corp, ITI scrips rise on stake sale, quota extension - Oct 06, 2010
- Coal India to decide on anchor investor in two-three days - Aug 13, 2010
- New Orissa port receives first ultra-large vessel - Jul 25, 2011
- Public Offer for PGCIL shares approved - Jul 22, 2010
- Record discharge of cargo at Odisha's Dhamra Port - Mar 29, 2012
- Hero Honda is now Hero MotoCorp Limited - Jul 29, 2011
- NMDC scouts for mines in Mozambique, South Africa - Sep 08, 2010
- Gopalpur port expansion project gets green nod - Mar 31, 2011
- MV Prabhu Daya enroute to Chennai, missing man rescued - Mar 05, 2012
Tags: 5 million, cabinet committee, coal india limited, crore, disinvestment, economic affairs, fpo, government of india, government stake, independent director, internal resource, joint venture, kick off meeting, managing director, oct dec, prospectus, red herring, rs 2, shipping corporation of india, tonnage