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Shipping Corp FPO on Nov 30, to buy 29 ships for Rs 6,000 crore

22 Nov 2010 Evaluate

The Shipping Corporation of India (SCI) is coming up with a follow-on public offer (FPO) opening November 30. It has plans to invest Rs 6,000 crore for acquisition of 29 ships by 2012. A part of the FPO mop-up worth Rs1,300 crore will be used for ship acquisition. The company is likely to tap overseas funds also to acquire these ships.

According to the Ministry of Shipping, the company has placed order for four panamax carriers at Rs1,095.72 crore. It has also ordered six handymax carriers for Rs1,239 crore. Panamax and handymax are categories of bulk carriers. The company also plans to acquire four aframax crude carriers for Rs 971 crore, a sub-class of oil tankers. The plans also include anchor handling, towing and supply vessels, among others. Of the 29 vessels, three have already been delivered to SCI, and at least eight more are likely to be delivered in this fiscal. This is as part of the company’s plan to replace vessels which are at the end of their economic life as well as to enhance capacity. With the addition of the new ships, the company plans to double capacity at around 10 million dwt.

Divestment of 10% government equity in SCI and fresh equity issue equivalent to 10% of its existing equity are on the cards as part of the FPO. The equity sale and issue of shares will reduce the government holding in SCI to 63.75%, from 80.12% at present.

Shipping Corpn. Share Price

301.00 -4.85 (-1.59%)
20-Apr-2026 15:05 View Price Chart
Peers
Company Name CMP
Shipping Corpn. 301.00
GE Shipping 1425.05
Dredging Corp 1007.25
Seamec 1559.30
Shreeji Ship.Global 371.95
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