Shipping Corp’s FPO price band fixed at Rs135-140 a share

Shipping Corp’s FPO price band fixed at Rs135-140 a share

New Delhi: The government on Friday fixed price band of Rs135-140 a share for Shipping Corporation’s FPO through which it expects to raise about Rs1,200 crore.

“Empowered Group of Ministers (EGOM) has fixed a price band of Rs135-140 a share for the follow on offer of (FPO) of Shipping Corporation of India (SCI)," shipping minister G. K. Vasan told reporters here.

The price band is lower that SCI’s closing price of Rs145.40 on the Bombay Stock Exchange today. It is Rs31-36 less than than the company’s 52-week average of Rs171 on BSE.

Retail investors and SCI employees will get 5% discount on the issue price. Under the share sale plan, 0.5% stake has been reserved for employees.

The company has appointed SBI Caps, IDFC Capital and ICICI Securities as the Book Running Lead Managers for the issue in August.

The government had approved the sale of 10% or 42 million shares in SCI and also allowed the company to issue fresh equity to the tune of 10% of the paid-up capital.

Following the stake sale, the government’s holding in the company will come down to 63.75% from 80.12% at present.

SCI plans to invest the money raised on expansion, including its proposed entry into the ports and terminal management business in a joint venture with a global company.

So far this fiscal, divestment in Coal India, Power Grid Corporation, Satluj Jal Vidyut Nigam and Engineers India has fetched about Rs21,000 to 22,000 crore for the government.