Cabinet approves 10 p.c.divestment in SCI

• The Centre on Tuesday embarked on a two-pronged strategy, allowing disinvestment of 10 per cent of its stake in Shipping Corporation of India (SCI) and allowing it to raise additional equity of like quantum.
• The disinvestment in this Navratna company is expected to generate about Rs.1,300 crore.
• The Cabinet Committee on Economic Affairs has allowed a discount of 5 per cent to retail investors on the issue price and allowed reservation of shares of 0.50 per cent of the issue size along with discount of 5 per cent on the offer price for employees of the largest shipping company in the country owning 75 vessels.
  
• The ownership of the government in SCI will come down to 63.75 per cent from the current 80.12 per cent after the sale and further issue of shares.
•  The government hopes to develop a road map for higher public participation in the company while ensuring that government equity did not fall below 51 per cent.