Shipping Corporation expects to file DRHP this quarter
By IANSWednesday, October 6, 2010
KOLKATA - 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 governments 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 companys 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.
