On Tuesday, the Cabinet Committee on Economic Affairs (CCEA) gave its approval for the divestment of Shipping Corporation of India (SCI). Under the approval SCI can issue fresh equity amounting ten percent of its existing equity.

Market regulator, Sebi has reported that the mentioned ten percent will amount to four crores twenty three lacks forty five thousand three hundred and sixty five shares in total.

CCEA has also given approval for selling off ten percent of the equity on hand out of the government's stake. From this divestment the firm can raise an expected amount of one thousand three hundred crores of rupees.

At present the government has eighty decimal one two percent stake in SCI but with the issuance of this shares and this offer it will come down to sixty three decimal seven five percent. As a result of this divestment more people can have stakes in the company but at the same time government holding will never become less than fifty one percent in the firm.

The chairperson of SCI Mr. S. Hazra reported that the deadline for the offering has not yet been settled but it is definitely happening in this financial year.

The price band for the issue will be decided by the empowered committee added Hazra. Today SCI shares in the Bombay Stock Exchange was trading at a gain of zero decimal four five percent and closed at one hundred and sixty eight rupees. The company has a fleet of seventy five ships and can ferry load of five decimal one zero million DWT (Dead Weightage Tonnage)

Employees of the firm as well as retail investors will pay five percent less than the price of issue. Zero decimal five percent shares have been kept aside for employees of the firm as per a statement which has been issued following the meeting of CCEA.