CCEA approves 10 pc SCI stake sale

Carrying forward its ambitious disinvestment programme,the Centre on Tuesday gave its nod to a 10 per cent stake sale in state run Shipping Corporation of India through a follow on public offer. The Cabinet Committee on Economic Affairs today gave its approval for issue of fresh equity of 10 per cent by Shipping Corp of India of its existing equity8230;sale of 10 per cent of the existing equity out of the government shareholding, an official statement said.

As part of the FPO,the Centre will sell 4.23 crore of shares,which will be matched by the company. SCI employees will have a quota of 0.5 per cent of share sale and will also get a discount of 5 per cent on issue price. Post the offer,the government holding in the company will reduce to 64 per cent from the current 80.12 per cent. Of the remaining,Life Insurance Corporation holds little over 10 per cent and the rest is with the public.

The Centre will earn about Rs 1,300 crore from the FPO as it races to meet a target of Rs 40,000 crore from disinvestment proceeds. This disinvestment will develop a road map for higher people ownership,while ensuring that the government equity does not fall below 51 per cent, the statement added.