Shipping Corporation India (SCI) had slipped below its follow-on-offer (FPO) price of Rs 140 per share during intra-day trades on the Bombay Stock Exchange (BSE). The stock currently trading at Rs 141 had touched intra-day low of Rs 132.
The Indian government had fixed the issue price of follow-on offer at the upper end of price band of Rs 140 per share. A 10 % stake was diluted through the FPO in the largest Indian shipping company that accounts for a third of the country's tonnage, while the company has issued fresh equity equivalent to 10% of the paid-up capital.
SCI plans to mobilize around Rs 1,160 crore from FPO. Net proceeds from the fresh issue will be used for part funding the equity portion for the acquisition of certain vessels by company and general corporate purposes.
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