Mumbai: The Shipping Ministry is planning to dilute the government's stake in three companies under it -- Cochin Shipyard, Shipping Corp of India (SCI) and Dredging Corp of India (DCI) in the next fiscal (FY11), a top Shipping Ministry official said.
"We have received a proposal from Cochin Shipyard for an IPO to raise funds for expansion. This could be through an issue of fresh equity shares of about 10 percent. There is no proposal yet for selling government stake through the IPO," Secretary, Ministry of Shipping, K Mohandas, told a news agency.
However, in both SCI and DCI, the government is likely to dilute at least 10 percent of the stake it holds in each, he said.
The Ministry is evaluating the disinvestment process in SCI and DCI and will take a final call on the issue early-next fiscal (FY11), Mohandas said.
Cochin Shipyard is likely to come out with its IPO first, he said.
While he would not commit a time-frame, it is understood that both the IPO and government disinvestment process would take place in the next six to nine months.
In March last year, the wholly government-owned Cochin Shipyard had split its Rs 1,000 face-value share into 100 shares of Rs 10 each in order to expand its equity base.
Currently, the government holding in SCI and DCI stands at 80.12 percent and 78.56 percent, respectively.
The government is aiming to sell shares in state-owned companies to not only raise funds for the companies but also to fund physical and social infrastructure in the country and to bridge a budget deficit that may widen to the equivalent of 6.8 percent of the gross domestic product in the year ending March 2010.
PTI
First Published: Sunday, January 24, 2010, 10:29