| Code: 116890 |

TIN news:  Shipping Corporation of India (SCI), the largest domestic shipliner, will seek shareholders’ nod for redeployment of Rs. 330 crore received as refund from shipyards that were part of the proceeds of follow-on offer.
SCI had come up with FPO in 2010 and had raised Rs. 582.45 crore through the fresh issue.
In a filing to BSE today, the company said it will seek shareholders’ approval through postal ballots for “re-deployment of Rs. 330 crore received as refund from shipyards which were originally part of the proceeds of the further public offer’’.
“The company had utilised 100 per cent of FPO funds…
However, due to default of the shipyards in fulfilling the obligations, the company had to rescind the shipbuilding contracts for four vessels and re-negotiate the shipbuilding contract for one vessel,” it said.
The company had received an amount of Rs. 330.65 crore as refund from the shipyards on rescission of the shipbuilding contracts.
The said amount is unutilised as on date as the company did not come across any viable proposal to invest the same, it said.
“Keeping in view the prevailing market condition, the board of directors of SCI is of the opinion that in addition to the amended objects of utilisation as contained the resolution passed on January 1, 2015 through postal ballot, the said amount should be utilised towards repayment of financial obligations w.r.t the vessels acquired by SCI since 2011 i.e. after the fresh issue of shares,” the company said.

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