Shipping Corporation FPO Basis of Allotment

Shipping Corporation FPO Details

Issue Open Nov 30, 2010
Issue Close Dec 3, 2010
IPO Price ₹140
Face Value ₹10
IPO Size ₹1,164.73 Cr
Listing At BSE, NSE
IPO Lot Size 50

The Shipping Corporation of India Limited

Our Company was incorporated as Eastern Shipping Corporation Limited on March 24,1950 under the Companies Act, 1913 in Mumbai. With effect from October 2,1961, Western Shipping Corporation Limited was amalgamated with our Comoany under the Shipping Corporations Amalgamation Order, 1961, issued by the Government of India. The name of our Company was changed from Eastern Shipping Corporation Limited to The Shipping Corporation of India Limited on October 21,1961. Subsequently, for the purpose of listing in 1992, our Company was changed from a private company to a public company and received a fresh certificate of incorporation on February 18,1993. Registered Office: Shipping House, 245, Madame Cama Road, Mumbai 400 021. Company Secretary and Compliance Officer: Dipankar Haldar; Tel.: (9122) 2202 6666; Fax: (9122) 22026906; Website: www.shipindia.com; E-mail: cs@sci.co.in

BASIS OF ALLOTMENT

FURTHER PUBLIC ISSUE OF 84,690,730 EQUITY SHARES OF Rs. 10 EACH ("EQUITY SHARES") FOR CASH AT A PRICE OF Rs. 140* PER EQUITY SHARE OF THE SHIPPING CORPORATION OF INDIA LIMITED (THE "COMPANY") AGGREGATING TO Rs. 11,647.28 MILLION# (HEREINAFTER REFERRED TO AS THE "ISSUE"). THE ISSUE COMPRISES OF A FRESH ISSUE OF 42,345,365 EQUITY SHARES BY OUR COMPANY (THE "FRESH ISSUE") AND AN OFFER FOR SALE OF 42,345,365 EQUITY SHARES BY THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF SHIPPING, GOVERNMENT OF INDIA (THE "SELLING SHAREHOLDER"). THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 84,267,276 EQUITY SHARES ("THE NET ISSUE") AND A RESERVATION OF UP TO 423,454 EQUITY SHARES FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (AS DEFINED HEREIN) ("THE EMPLOYEE RESERVATION PORTION"). THE ISSUE WOULD CONSTITUTE 18.18% OF THE POST ISSUE PAID-UP EQUITY CAPITAL OF OUR COMPANY AND THE NET ISSUE WOULD CONSTITUTE 18.09% OF THE POST ISSUE PAID-UP EQUITY CAPITAL OF OUR COMPANY. THE PRICE BAND AND THE MINIMUM BID LOT WAS DECIDED BY OUR COMPANY AND THE SELLING SHAREHOLDER IN CONSULTATION WITH THE BOOK RUNNING LEAD MANAGERS AND ADVERTISED IN FINANCIAL EXPRESS (ALL EDITIONS), JANSATTA (ALL EDITIONS) AND NAVSHAKTI (REGIONAL DAILY) AT LEAST ONE WORKING DAY PRIOR TO THE BID OPENING DATE*.

#Assuming full subscription in all the categories at the Issue Price and considering Retail Discount of 5% and Employee Discount of 5% to the Issue Price. However, the total Issue Size maybe required to be adjusted as a consequence of, inter alia, the Retail Discount and the Employee Discount and the actual subscription and Allotment in terms of the Basis of Allotment to be finalised in consultation with the Designated Stock Exchange.

"Discount of 5% to the Issue Price being Rs. 7 per Equity Share determined pursuant to completion of the Book Building Process has been offered to Eligible Employees (the "Employee Discount") and to Retail Individual Bidders (the "Retail Discount")

This issue has been made through the 100% Book Building Process wherein up to 50% of the Net Issue was to be allotted on a proportionate basis to Qualified Institutional Buyers ("QIBs" and such portion the "QIB Portion"). Further, 5% of the QIB Portion was to be available for Allotment on a proportionate basis to Mutual Funds only. The remainder was available for Allotment on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. In addition, not less than 15% of the Net Issue was available for Allotment on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue was available for Allotment on a proportionate basis to Retail Individual Bidders, subjectto valid Bids being received at or above the Issue Price. Further, 423,454 Equity Shares was available for Allotment on a proportionate basis to the Eligible Employees, subject to valid Bids being received from them at or abov the Issue Price.

The Issue received 308,888 applications for 406,795,350 Equity Shares resulting in 4.80 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional Bidders, Retail Individual Bidders and Employees are as under: (Before technical rejections)

Sr. Category No. of Applications
Received
No. of Equity Shares
Bid for
No. of times
subscribed
A Eligible Employees 159 65,650 0.16
B Retail Individual Bidders 308,395 187,183,150 6.35
C Non Institutional Bidders 291 43,065,900 3.41
D Qualified Institutional Bidders 43 176,480,650 4.19
Total 308,888 406,795,350 4.80

Final Demand
A summary of the final demand as per the BSE and the NSE as on the Bid/ Issue Closing Date at different bids is as detailed hereunder

Bid
Price (Rs.)
No. Of Equity Shares
Bid for
% to
Toatal
Cumulative
Total
Cumulative %
to Total
135 18,191,850 4.10 18,191,850 4.10
136 84,400 0.02 18,276,250 4.12
137 1,783,400 0.40 20,059,650 4.52
138 10,793,200 2.43 30,852,850 6.96
139 1,145,750 0.26 31,998,600 7.21
140 249,340,250 56.21 281,338,860 63.42
Cutoff price 162,258,200 36.58 443,597,050 100.00

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being the National Stock Exchange of India Limited ("NSE") on December 13,2010.

A. Allotment to Employees (After Technical Rejections)
The Basis of Allotment to the Eligible Employees of the Company, who have bid at Cut-off Price or the Issue Price of Rs.140 per Equity Share (Discount of Rs. 7 for Eligible Employees on allotment) was finalized in consultation with NSE. The category has been subscribed for 0.12 times. There were a total of 159 applications for 65,650 Equity Shares made under the Employee category out of which 8 applications for 4,550 Equity Shares were made under ASBA process. A total of 126 applications for 52,000 Equity Shares were found valid and they were considered for allotment at a price of Rs.133/- per Equity Share. The under subscription in employee category has been spilled over to QIB, Retail and Non-Institutional category in the ratio of 50:35:15.

B. Allotment to Retail Individual Bidders (After Technical Rejections)
The Basis of Allotment to the.Retail Individual Bidders, who have bid at Cut-off Price or the Issue Price of Rs. 140 per Equity Share (Discount of Rs. 7 for Retail Individual Bidders on allotment), was finalized in consultation with NSE. This category has been subscribed to the extent of 6.25 times. There were a total of 308,395 applications for 187,183,150 Equity Shares out of which 88,125 applications for 46,573,850 Equity Shares were made under ASBA process. Of these 303,639 applications for 185,199,050 Equity Shares were found valid and they were considered for allotment at a price of Rs.133 per Equity Share. The total number of Equity Shares allotted in Retail Individual Bidders category is 29,623,556 Equity Shares which were allotted to 241,081 successful applicants. The category-wise details of the Basis of Allotment are as under:

Category No. of Applications % to total Total No.
of Equity Shares applied
% of total No. of' Equity .
Shares
allotted
Ratio Total No. of Equity Shares allotted
50 27,300 8.99 1,365,000 0.74 50 4:25 218,400
100 31,721 10.45 3,172,100 1.71 50 8:25 507,550
150 14,681 4.84 2,202,150 1.19 50 12:25 352,350
200 22,274 7.34 4,454,800 2.41 50 16:25 712,750
250 9,273 3.05 2,318,250 1.25 50 4:5 370,900
300 9,308 3.07 2,792,400 1.51 50 16:17 438,000
350 14,980 4.93 5,243,000 2.83 56 FIRM 838,880

Additional (for category 350 shares only)

1 5:102 734
400 7,082 2.33 2,832,800 1.53 64 FIRM 453,248
450 2,161 0.71 972,450 0.53 72 FIRM 155,592
500 10,713 3.53 5,356,500 2.89 80 FIRM 857,040
550 1,905 0.63 1,047,750 0.57 88 FIRM 167,640
600 2,492 0.82 1,495,200 0.81 96 FIRM 239,232
650 1,370 0.45 890,500 0.48 104 FIRM 142,480
700 73,537 24.22 51,475,900 27.80 112 FIRM 8,236,144
750 3,010 0.99 2,257,500 1.22 120 FIRM 361,200
800 1,059 0.35 847,200 0.46 128 FIRM 135,552
850 556 0.18 472,600 0.26 136 FIRM 75,616
900 798 0.26 718,200 0.39 144 FIRM 114,912
950 286 0.09 271,700 0.15 152 FIRM 43,472
1000 2,745 0.90 2,745,000 1.48 160 FIRM 439,200
1050 723 0.24 759,150 0.41 168 FIRM 121,464
1100 614 0.20 675,400 0.36 176 FIRM 108,064
1150 222 0.07 255,300 0.14 184 FIRM 40,848
1200 439 0.14 526,800 0.28 192 FIRM 84,288
1250 366 0.12 457,500 0.25 200 FIRM 73,200
1300 267 0.09 347,100 0.19 208 FIRM 55,536
1350 260 0.09 351,000 0.19 216 FIRM 56,160
1400 63,496 20.91 88,894,400 48.00 224 FIRM 14,223,104

C. Allotment to Non Institutional Bidders (After Technical Rejections)
The Basis of Allotment to the Non-Institutional Bidders, who have bid at the Issue Price of Rs.140/- per Equity Share, was finalized in consultation with NSE. This category has been subscribed to the extent of 2.78 times and hence allotment was done on full and firm basis to all valid applicants. There were a total of 291 applications for 43,065,900 Equity Shares out of which 119 applications for 17,923,900 Equity Shares were made under ASBA process. Of these 205 applications for 35,298,350 Equity Shares were found valid and they were considered for allotment. The total number of shares allotted in Non Institutional Investor category is 12,695,809 Equity Shares which were allotted to 205 successful applicants. The category-wise sample details of the Basis of Allotment are as under:

Category No. of Applications % to total Total No.
of Equity Shares applied
% of total No. of Equity Shares allotted Ratio Total No. of Equity Shares allotted
1,450 12 5.85 17,400 0.05 522 FIRM 6,264
1,500 26 12.68 39,000 0.11 540 FIRM 14,040
3,000 2 0.98 6,000 0.02 1,079 FIRM 2,158
10,000 7 3.41 70,000 0.20 3,597 FIRM 25,179
18,000 3 1.46 54,000 0.15 6,474 FIRM 19,422
22,850 1 0.49 22,850 0.06 8,218 FIRM 8,218
35,000 5 2.44 175,000 0.50 12,589 FIRM 62,945
50,000 3 1.46 150,000 0.42 17,984 FIRM 53,952
70,000 1 0.49 70,000 0.20 25,177 FIRM 25,177
82,500 1 0.49 82,500 0.23 29,673 FIRM 29,673
90,000 1 0.49 90,000 0.25 32,370 FIRM 32,370
100,000 1 0.49 100,000 0.28 35,967 FIRM 35,967
200,000 3 1.46 600,000 1.70 71,934 FIRM 215,802
357,100 2 0.98 714,200 2.02 128,439 FIRM 256,878
428,550 1 0.49 428,550 1.21 154,137 FIRM 154,137
500,000 1 0.49 500,000 1.42 179,836 FIRM 179,836
642,850 1 0.49 642,850 1.82 231,215 FIRM 231,215
715,000 1 0.49 715,000 2.03 257,165 FIRM 257,165
850,000 1 0.49 850,000 2.41 305,721 FIRM 305,721
1,000,000 1 0.49 1,000,000 2.83 359,671 FIRM 359,671
1,428,550 1 0.49 1,428,550 4.05 513,809 FIRM 513,809
1,785,700 4 1.95 7,142,800 20.24 642,265 FIRM 2,569,060
2,142,850 1 0.49 2,142,850 6.07 770,722 FIRM 770,722
3,000,000 1 0.49 3,000,000 8.50 1,079,003 FIRM 1,079,003
3,214,250 1 0.49 3,214,250 9.11 1,156,063 FIRM 1,156,063
3,571,400 1 0.49 3,571,400 10.12 1,284,521 FIRM 1,284,521

D. Allotment to Qualified Institutional Buyers (After Rejections)
The Basis of Allotment to the Qualified Institutional Bidders, who have bid at the Issue price of Rs.140/- per Equity Share was finalized on a proportionate basis. This category has been subscribed to the extent of 4.04 times. There were a total of 43 applications for 176,480,650 Equity Shares made under the QIB category out of which 35 applications for 169,503,150 Equity Shares made under ASBA process. Of these 39 applications for 171,195,550 Equity Shares were found valid and they were considered for allotment. The total number of shares allotted in Qualified Institutional Investors category is 42,319,365 Equity Shares which were allotted to 39 successful applicants.

Category Fls/Banks Flls MFs ICs Total
No.of Equity Shares allotted 38,151,842 2,054,402 1,250,050 863,071 42,319,365

The FPO Committee of the Board of Directors of the Company at its Meeting held at Mumbai on December 14,2010 has allotted the Equity Shares to the various successful Bidders.

The CAN-cum-Refund Orders and allotment advice and/ or notices have been dispatched to the address of the Bidders as registered with the depositories on or prior to December 15,2010. In case the same is not received within 10 days, investors may contact at the address given below. Further, the Instructions to Self Certified Syndicate Banks have been dispatched on December 13, 2010. The Refund Orders have been over-printed with the bank account details as registered, if any, with the depositories. The Equity Shares allotted to successful applicants has been credited to their beneficiary accounts subject to validation of the account details with the depositories concerned.
The Company has obtained the listing and trading permission from the Bombay Stock Exchange Limited and the NSE and the Equity Shares allotted are tradable on the Stock Exchanges with effect from December 15, 2010.

INVESTORS PLEASE NOTE
This details of the Allotment made would be hosted on the website of Registrar to the Issue, Karvy Computershare Private Limited at http://karisma.karvy.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicant, serial number of the Bid-cum-Application Form, number of Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

Karvy Computershare Private Limited
Unit: The Shipping Corporation of India Limited
Plot No. 17 to 24, Vithalrao Nagar, Hitech City Road,
Madhapur, Hyderabad - 500081,
Fax: 040-23420814 Email: einward.ris@Karvy.com

TOLL FREE - HELPLINE NUMBER: 1-800-3454001

Place: Mumbai
Date: December 15,2010
For The Shipping Corporation of India Limited
Sd/-
Dipankar Haldar
Company Secretary

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF THE SHIPPING CORPORATION OF INDIAUMITED

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

The Shipping Corporation of India Limited, subject to market conditions and other considerations, has made a further public issue of its equity shares and has filed the Prospectus with Registrar of Companies, Maharashtra, Mumbai. The Prospectus is available on the website of SEBI at www.sebi.gov.in and at the websites of the Book Running Lead Managers at www.sbicaps.com, www.icicisecurities.com and www.idfccapital.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled "Risk Factors" in the Prospectus. The information contained herein is not for publication or distribution in or into the United States of America. These materials do not constitute an offer of securities for sale in any jurisdiction, including the United States. The equity shares have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), or any state securities laws in the United States and may not be offered or sold within the United States except pursuant to an exemption from or in a transaction not subject to, registration requirements of the US Securities Act and in accordance with any applicable US state securities laws. The equity shares are being offered and sold within the United States only in compliance with Rule 144A under the US Securities Act, and outside the United States only in compliance with Regulation S under the US Securities Act and the applicable laws of each jurisdiction where such offers and sales occur.

Shipping Corporation FPO Basis of Allotment FAQs

  1. 1. How shares are allotted in Shipping Corporation FPO?

    Check the basis of allotment document above to know about how the shares are allocated in Shipping Corporation FPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).
  2. 2. What is Shipping Corporation FPO basis of allotment status?

    The Shipping Corporation FPO basis of allotment (published above) tells you how shares are allocated to you in Shipping Corporation FPO and category wise demand of IPO share.

    Visit the Shipping Corporation FPO allotment status page to check the number of shares allocated to your application.

  3. 3. What is Shipping Corporation FPO allotment process?

    Check the basis of allotment document above to know about how the shares are allocated in Shipping Corporation FPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).








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