Shipping Corporation of India, the largest domestic shipping liner, today said it has filed the final papers with market regulator Sebi for its upcoming follow-on public offer.
The Rs 1,300 crore FPO is likely to hit the capital markets by the end of this month or early December.
"We are hopeful of coming out with an follow-on offer by end of this month or early December," SCI's Chairman and Managing Director S Hajara had said last week.
The government in October, had approved selling its 10 per cent stake, comprising of 42.35 million shares, in Shipping Corporation of India and allowed the company to issue fresh equity to the tune of 10 per cent of the paid-up capital.
Post stake sale, the government's holding in the company will come down to 63.75 per cent from 80.12 per cent currently, Hajara had said.
The road shows are currently being held by the company in Singapore, Hong Kong, London and New York this week to attract the foreign investors.
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The company plans to use the money for its expansion plans, which includes entry into port and terminal management in joint venture with a global company.
It has already expressed interest in picking up 10-15 per cent in leading shipbuilders in the country.
Retail investors and employees of the largest domestic shipping liner would get 5 per cent discount on the issue price in the FPO, while the employees will also get a quota of 0.5 per cent of share sale.
The company had appointed SBI Caps, IDFC Capital and ICICI Securities as the Book Running Lead Managers for the issue in August.
So far, the divestments in Coal India, Satluj Jal Vidyut Nigam and Engineers India have fetched over Rs 17,000 crore for the government, while the just concluded FPO of the Power Grid Corporation is expected to add about Rs 3,800 further into the government's kitty.
The shares of the company settled at Rs 165.10 a piece on the Bombay Stock Exchange, down 3.68 per cent over the previous close.