Government may divest up to 10 per cent of its stake in SCI

The government may divest up to 10 per cent of its stake in Shipping Corporation of India.

"The government in their list has included Shipping Corporation (SCI) for disinvestment in this fiscal. It is likely to happen. Disinvestment could be up to 10 per cent," SCI chairman and managing director S Hajara said here on the sidelines a SCOPE conference today.

The government currently holds 80.12 per cent in SCI, while over 10 per cent is held by LIC. The remaining 3.15 per cent is already with the public.

Asked if the company could issue fresh equity, he said, "we don't know. Discussions are on...there could be some possibility but no decision has been taken as yet."

Shipping secretary K Mohandas had said last month that the government was looking at various proposals for SCI, including a follow-on-public offer.

Hajara said a part of the disinvestment proceeds will be utilised for further acquisition. Asked how much SCI plans to raise from divestment, Hajara said it will depend on the market condition.

SCI scrips today closed at Rs 165.50 per share, up 0.88 per cent from on the Bombay Stock Exchange.

SCI at present owns 76 ships of 5.1 million DWT (deadweight tonnage) and has interests in all segments of shipping trade. In addition, it mans and manages 60 vessels of 0.2 million tonnes DWT. DWT is the total weight of the ship including the cargo, crew, fuel etc.

SCI selloff is part of the government's plans to raise up to Rs 40,000 crore this fiscal through disinvestment. Besides SCI, the government is looking at divesting its stake in three shipping-related companies--Cochin Shipyard and Dredging Corp of India.

The government had raised about Rs 25,000 crore last fiscal by divesting its stakes in NHPC, Oil India, NTPC, Rural Electrification Corp.

CCEA approves disinvestment in Hindustan Copper Ltd. and Coal India Ltd.

The Cabinet Committee of Economic Affairs (CCEA) today approved disinvestment in Coal India (CIL) and Hindustan Copper Ltd. (HCL). The Cabinet has approved 10% government stake sale in Coal India. In case of Hindustan Copper, the Cabinet has decided to disinvest through 10% fresh equity sale.

FPO of Hindustan Copper is likely to come in the market in the month of September this year. Hindustan Copper is in the process of appointing merchant banker for the same.

Government is going to raise Rs 40,000 crore from disinvestment in this year. The said stake sale is a part of government’s disinvestment strategy.

The government is planning to sell its stake in 10 companies, including MMTC, CIL, SAIL and RINL this fiscal. Last fiscal, it had raised Rs 25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.

Hindustan Copper is currently quoting at Rs 519.15 which is 10.47% higher than previous close. Its share price has managed to hit intraday high of Rs 537 and low of Rs 471. Total traded quantity of shares of Hindustan Copper is 4,393,633 on NSE at 11.46 hrs IST.

Hindustan Copper is a public sector enterprise. Government owns 99.59% in Hindustan Copper. This is the only company which encompasses mining, beneficiation, smelting, refining and casting of refined copper metal.

Coal India is the leader in Indian coal sector. It is largest coal producing company in the world. Its operations are spread in 81 mining areas and it owns 7 wholly owned coal producing subsidiaries.