SCI files draft prospects with SEBI for follow-on public offer

Shipping Corporation of India Ltd today filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI), in connection with its follow-on public offer of a fresh issue of 42,345,365 equity shares.

The Cabinet Committee on Economic Affairs today said the ministry of shipping has approved the issue of fresh equity of 10 per cent of its existing equity by SCI in addition to the sale of 10 per cent of the existing equity holding of the government.

Retail investors will get a discount of 5 per cent on the issue price.

Also, 0.5 per cent of the issue will be reserved for subscription by employees of the company. Employees of SCI will also get a discount of 5 per cent on the offer price.

The SCI stock hit an intraday high of Rs189.50 and a low of Rs179.10 before closing the day at Rs187.70, up Rs3.30 (1.79 per cent). The total traded volume of the SCI scrip was 3,66,000 against the 2-week average of 5,74,000.

SCI, meanwhile, announced an increase of  $200/TEU in freight rates ex-Indian sub-continent to European sectors with effect from 1 November.

The increase is for all the bookings to north Europe, the UK, Mediterranean and Black Sea trades, SCI said in a press release issued today.