Govt to dilute stake in 3 shipping cos

MUMBAI: The government will divest its stake in three shipping companies — Cochin Shipyard, Shipping Corp of India (SCI) and Dredging Corp of India (DCI) — in the next fiscal, 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 per cent," K Mohandas, Secretary - Ministry of Shipping, said.

In both SCI and DCI, the government is likely to dilute at least 10 per cent stake, he said.

The shipping ministry is evaluating the disinvestment process in SCI and DCI and will take a final call on the issue early next fiscal (2010-11), Mr 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. - PTI