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Government plans divestment in SCI
6 October 2010: The Cabinet Committee on Economic Affairs (CCEA) on 5 October 2010 approved to divestment of Shipping Corporation of India (SCI).
The CCEA approved issue of fresh equity of 10 per cent by SCI of its existing equity, amounting to 4,23,45,365 shares in the domestic market as per SEBI regulations. It also approved sale of 10 per cent of the existing equity out of the government shareholding, amounting to 4,23,45,365 shares in the domestic market as per SEBI regulations. The divestment of SCI is expected to generate approximately Rs 1,300 crore.
The government ownership in SCI is currently at 80.12 per cent and after this offer of sale and further issue of shares, the government holding will be 63.75 per cent. This disinvestment will develop a roadmap for higher people ownership of this company while ensuring that the government equity does not fall below 51 per cent.
Source: Times of India