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.
| Company Name | CMP |
|---|---|
| Shipping Corpn. | 301.00 |
| GE Shipping | 1425.05 |
| Dredging Corp | 1007.25 |
| Seamec | 1559.30 |
| Shreeji Ship.Global | 371.95 |
| View more.. | |
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: