SCI's follow-on public offer by early December

State-owned Shipping Corporation of India (SCI) is likely  to come out with its follow-on public offer by end-November or early-December, a top company official said here.

"We are expecting approval from the Securities and Exchange Board of India (Sebi) approval shortly, following which we will file the copy of the red-herring prospectus with the Registrar of Companies. We are hopeful of coming out with our follow-on offer by end-this month or early-December," SCI's Chairman and Managing Director, S Hajara, told reporters here.

The issue comprises a fresh issue of 42.35 million shares and an offer for sale of another 42.35 million shares. Post the stake-sale, the Government's holding in the company will come down to 63.75 per cent from the 80.12 per cent presently. The stake-sale proceeds will be used to buy new vessels.

The company plans road-shows in London, New York, Singapore and Hong Kong from next week.

The company has drawn up a capex plan of USD one billion per annum for the next three year period, Hajara said, adding that the capex will be financed through internal accruals and debt.

The company has a strong balance-sheet with Rs 2,400 crore cash and a debt-equity ratio of 0.45 and a current ratio of 2.97.