Shipping Corporation of India FPO
Shipping Corporation of India (SCI) Follow on public offer (FPO) may hit the Indian stock market in December 2010. Many readers have asked me to review this FPO and that’s why I finally decided to review this FPO.
Well, Shipping Corporation of India is India’s largest domestic shipping liner. Right now, the government of India owns 80% stake in SCI. And after FPO, the government is planning to sell 10% of its equity as well as add 10% more fresh equity.
This will help government in two ways – One is, by selling its own 10% stake from its current 80% stake, it will raise money for it and fulfill its fiscal deficits and by adding 10% fresh equity, the company will use this capital to grow further.
In fact, right now Shipping corporation of India is looking to buy a 10-15% stake in Shipyard company of India to diversify its business. This company is known as Pipavav Shipyard company which was taken to the public in September 2009.
About Shipyard Corporation Fundamentals -
The fundamentals of Shipyard corporation are very strong. I will give it 4 out of 5 stars.
Shipyards and dockyards are places which repair and build ships. These can be yachts, military vessels, cruise liners or other cargo or passenger ships. Dockyards are sometimes more associated with maintenance and basing activities than shipyards, which are sometimes associated more with initial construction. The terms are routinely used interchangeably, in part because the evolution of dockyards and shipyards has often caused them to change or merge roles.
The Shipping Industry of India has several PSUs. The following is a list of Shipyard companies owned by the Government of India (PSU).
1. Shipping Corporation of India
2. Dredging Corporation of India Ltd.
3. COCHIN Shipyard Ltd.
4.Mazagaon Docks Ltd.
5. Hindustan Shipyard Ltd.
This is a business with a huge market opportunities. And SCI is India’s leading PSU in Shipyards industry.
So Go for this IPO. There is no problem. The price band will be declared soon and I am sure that the price band will be reasonable valuations.
0 comments:
Post a Comment