SCI to spend $3 bn over next three years on expansion

Monday, 6 December 2010 00:01 - - {{hitsCtrl.values.hits}}

MUMBAI: State-run Shipping Corporation of India (SCI) is looking to spend around $3 billion on expansion activities over the next three years.

“We have chalked out our growth plans and will invest $1 billion every year for the next three years,” SCI Chairman and Managing Director Mr S Hajara told PTI on the sidelines of a conference here.

The capex will be financed through a mix of internal accruals and debt, Mr Hajara said, adding that the company’s recently concluded follow-on public offer was oversubscribed five times and mopped up around Rs 1,200 crore.

The offer received bids for 41.64 crore shares, though just 8.46 crore shares were on offer. The issue closed on Friday (December 3).

However, the FPO proceeds will be insufficient to cover the massive $3 billion investment plan drawn up by SCI for the next three years and the company will largely have to rely on funding from banks.