Shipping Corporation of India's (SCI) follow-on public offer (FPO) has opened up today with a price band at Rs135-140 a share for 8,46,90,730 equity shares. SCI is one of India's largest shipping companies in terms of Indian flagged tonnage.
The issue combines the sale of 42,345,365 equity shares by the government with a fresh issue of an equal number of equity shares by the company. The issue comprises a net public issue of 84,267,276 equity shares and a reservation for eligible employees of up to 423,454 equity shares.
The company plans to raise over Rs1,100 crore through the FPO, which will close for subscription on 3 December. With the issue, central and state government holding would reduce to 63.75 per cent.
According to the management, the company has ordered construction of 29 vessels that are expected to be delivered between 2010-2013.
As of 30 June, 2010 SCI had approximately 35 per cent share of Indian flagged tonnage according to the website of directorate general of shipping.
As of 30 September, 2010, it owned a fleet of 74 vessels of 5.11 million dead weight tonnage (DWT).