Shipping Corporation of India (SCI) proposes to raise about Rs 3,000 crore through a

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combination of fresh equity issue and divestment of government stake.

A senior shipping ministry official said that SCI top brass has initiated discussions but the size of the fresh equity offer had not yet been finalised.

“We are not going to reduce government’s stake below 51 per cent, so the equity dilution would be between 15 and 30 per cent,” the official said on condition of anonymity.

The centre holds 81 per cent stake in SCI, while the rest is with private firms, qualified institutions and retail investors.

SCI, the country’s largest shipping company, plans to purchase over 35 ships at the cost of around Rs 9,000 crore over the next two years.

At present, the navratna company borrows almost 80 per cent of the money needed to buy a new ship. The fresh equity infusion will bring down the debt equity ratio.

“The idea is to make fresh equity funds available to reduce the debt component and interest liability. The company cannot sustain high debt in the long run,” the official said.

A SCI official when contacted refused to comment on the issue. He did confirm that the company was attempting at lowering the debt component in fresh ship acquisitions to around 70 per cent. “The government has already spoken about the disinvestment plan. We’ll do as they ask us to,” the SCI official, who did not wish to be named, said.

In 2005, SCI had announced plans to buy more than 75 new vessels worth Rs 15,000 crore by the end of 2011-12. However, due to the slowdown, it staggered the acquisitions.

The state-owned company has already placed an order for 13 ships and is likely to get the deliveries next year. The official said SCI has already tied up funds for these purchases.

The PSU posted a net profit of Rs 87.44 crore during the December quarter, less than Rs 94.06 crore for the same year-ago period. SCI gained 4.06 per cent on the BSE and closed at Rs 157.55 on Wednesday.