For its FPO or follow-on –public offer expected to be issued in this fiscal, Shipping Corporation of India will be filing its prospectus as stated by SCI chairman and managing director Mr. S Hajara. The FPO will see ten percent disinvestment by the central government as well as an issue of ten percent of fresh equity shares.

Mr. Hajara, while attending a CII council meeting on Wednesday, told reporters on the sidelines of the event that SCI had appointed three key managers for its FPO like ICICI Securities, HDFC and SBI Caps.

As a reaction to the approval of SCI divestment by the Cabinet the company shares went up buy fourteen percent over its last day’s close and closed at one hundred and ninety one rupees and eighty five paisa.

Hajara went on to say that the process of the FPO had started from the twenty first of September following a meeting between disinvestment ministers and secretaries of the Union of SCI.

CCEA or the cabinet Committee on Economic Affairs gave their approval on the divestment of government stake in the company on 5 October.

On October 5, the approval for the divestment of government stake in the company as well as issue of fresh equity shares had been given by CCEA or the Cabinet Committee on Economic Affairs.

SCI reported that with the divestment the government’s holdings in the company will come down to sixty three decimal seven five percent from the existing eighty decimal one two percent.

Hajara added saying that the proceeds from the issue will enhance the internal resources of the firm. The firm’s annual capital expenditure adds up to one billion dollars and to support its pay out the firm has a cash reserve amounting two thousand five hundred crores of rupees. So the fund received from the issue will boost up that reserve.