Shipping FPO shares on bourses, stock down 4.3%

Shares of Shipping Corporation of India (SCI) tanked over four per cent on the Bombay Stock Exchange, after the state-run firm's follow-on-public offer (FPO) was officially registered on the bourses on Wednesday.

The stock opened the day on a weak note and was trading at Rs 133.20 on BSE, down 4.31 per cent in the afternoon session. At the National Stock Exchange, too, the scrip was trading at Rs 133.70, down 4.05 per cent.

"Pursuant to the fresh issue of 4.23 crore equity shares by SCI, we have received the listing and trading approvals from the BSE and NSE, and the equity shares have been listed today. The respective allottees of shares can trade the said shares from today," Shipping Corp said in a filing to BSE.

In terms of volume, over 50 lakh shares of the state-run firm were traded on the two bourses. The company has raised Rs 1,200 crore through its FPO, which commenced trading on the bourses on Wednesday.

SCI had priced its FPO at the top end of the Rs 135-140 per share price band. Shipping Corp will invest the money raised from the FPO on expansion, including its proposed entry into ports and terminal management business.