SCI’s follow-on offer likely by early Dec

SCI’s follow-on offer likely by early Dec

Mumbai: State-owned Shipping Corporation of India (SCI) is likely to come out with its follow-on public offer (FPO) by end-November or early-December, a top company official said.

“We are expecting approval from the Securities and Exchange Board of India (Sebi) approval shortly, following which we will file the copy of the red-herring prospectus with the Registrar of Companies. We are hopeful of coming out with our follow-on offer by end-this month or early-December," SCI’s chairman and managing director, S Hajara, told reporters in Mumbai.

The issue comprises a fresh issue of 42.35 million shares and an offer for sale of another 42.35 million shares. Post the stake-sale, the government’s holding in the company will come down to 63.75% from the 80.12% presently. The stake-sale proceeds will be used to buy new vessels.

The company plans road-shows in London, New York, Singapore and Hong Kong from next week.

The company has drawn up a capex plan of $1 billion per annum for the next three year period, Hajara said, adding that the capex will be financed through internal accruals and debt.

The company has a strong balance-sheet with Rs2,400 crore cash and a debt-equity ratio of 0.45 and a current ratio of 2.97.