Cochin Shipyard IPO oversubscribed 3.16 times on day 2

Paterniano Del Favero
Agosto 3, 2017

Cochin Shipyard Ltd's initial public offering, which aims to raise up to 14.68 billion rupees ($231 million), was subscribed more than 76 times on the last day of the sale on Thursday, indicating strong interest in the state-run shipbuilder.

Cochin Shipyard, which built India's first indigenous aircraft carrier, the INS Vikrant, has fixed the price band of its IPO at Rs 424-432 apiece. The issue will constitute 25 percent of the post issue paid-up equity share capital.

The country's largest public sector shipyard aims to raise about Rs 1,400 crore by issuing a total 33.97 million shares as part of efforts to expand and construct larger vessels as well as undertake ship fix and fabrication. Retail investors category was subscribed 8.05 times. After the IPO, the government's stake will come down by 10 percentage points to 75 percent.

The proceeds of the offer for sale will be received by the selling shareholder - The Government of India.

Cochin Shipyard has the second-largest shipbuilding capacity in India and the highest market share in ship repairs.

The PSU company has clocked a revenue of Rs 2,059 crore in FY17, with 74% contribution from the ship building side and the rest from repairs.

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