Shipping Corp FPO fixed at Rs 135-140

The government fixed price band of Rs 135-140 a share for Shipping Corporation's FPO through which it expects to raise about Rs 1,200 crore.

"Empowered Group of Ministers (EGOM) has fixed a price band of Rs 135-140 a share for the follow on offer of (FPO) of Shipping Corporation of India (SCI)," Shipping Minister G K Vasan said.

The price band is lower than SCI's closing price of Rs 145.40 on the Bombay Stock Exchange. It is Rs 31-36 less than than the company's 52-week average of Rs 171 on BSE.

Retail investors and SCI employees will get five per cent discount on the issue price. Under the share sale plan, 0.5 per cent 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 per cent or 42 million shares in SCI and also allowed the company to issue fresh equity to the tune of 10 per cent of the paid-up capital.

Following the stake sale, the government's holding in the company will come down to 63.75 per cent from 80.12 per cent 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 Rs 21,000-22,000 crore for the government.

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