Shipping Corporation of India (SCI) has set a price band of Rs 135-140 for its follow-on public offer (FPO), which will open for subscription on Tuesday and close on December 3.
The band was decided after a meeting of the Empowered Group of Ministers today.
In October, the government had approved the sale of 10 per cent of its stake, or 42.35 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.
"The price band has been kept very close to the market price, which is fair. The market sentiment is negative due to recent developments and scams. There is little margin of safety available to investor," said K K Mittal, head - portfolio management services, Global Capital Markets.
SCI's share price closed at Rs 145, down by 1.3 per cent compared to the previous day's closing price at the Bombay Stock Exchange.
