Aug. 11 (Bloomberg) -- Shipping Corp. of India Ltd., the nation’s biggest marine transport company, approved a plan to sell up to a 20 percent stake, Chairman S. Hajara said.
The sale, pending approval from India’s cabinet, will comprise an offer of fresh shares and a stake sale by the government, Hajara said in a telephone interview. The state- owned company plans to invite bids from banks as early as this month to manage the offer, he said today.
India revived its plans to sell Shipping Corp. shares as Asia’s third-biggest economy seeks funds to narrow its budget deficit from a 16-year high. The government aims to raise as much as 400 billion rupees ($8.6 billion) this year by selling stakes in companies including Coal India Ltd. and Steel Authority of India Ltd.
Shipping Corp., which said profit increased 60 percent in the first quarter, seeks to raise funds as the company adds 14 ships in the financial year that started in April. The government, which owns an 80 percent stake in Shipping Corp., had in 2005 planned to sell a 15 percent stake in the company.
Shipping Corp. fell 1.1 percent to 165.55 rupees in Mumbai today. The shares have gained 12 percent this year. The company owns a fleet of 74 vessels of 5.01 million deadweight tons and has 29 vessels on order.
The government said in January it may sell shares in 60 state-run companies to shrink its budget deficit to 5.5 percent of gross domestic product this fiscal year from 6.9 percent last year. Since April, two state-run companies have tapped the markets as part of that initiative.
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