Shipping Corporation files prospects with SEBI for Rs1,300-crore follow-on offer

Shipping Corporation of India Ltd yesterday filed a red herring prospectus with the Securities and Exchange Board of India (SEBI) in connection with the follow-on public offer of the company.

The FPO consists of 42,345,365 fresh equity shares and an offer for sale of another 42,345,365 shares. The state-run shipping company expects to raise Rs1,300 crore through the stake sale.

"We are hopeful of coming out with a follow-on offer by the end of this month or early December," SCI chairman and managing director S Hajara had said last week.

Post-issue, the government's holding in the company will come down to 63.75 per cent from 80.12 per cent currently.

The FPO is expected to hit the market by the end of this month or early December. The company plans road shows in London, New York, Singapore and Hong Kong from this week.

SCI proposes to use the money for its expansion plan, which includes entry into port and terminal management in joint venture with a global company.

SCI is also looking at acquiring up to 15 per cent stake in a leading shipbuilding company in the country.

The SCI stock moved in a Rs172-Rs166.30 band in today's trading and was trading at Rs167, down Rs4.40 or 2.57 per cent. The total traded quantity was 0.61 lakh against the 2-week average of 0.86 lakh shares.