Cochin Shipyard IPO mops up huge funds
Published: Aug 16, 2017
NEW DELHI, AUGUST 16, 2017: The Cochin Shipyard Ltd (CSL) has raised Rs 1442 crores from the Initial Public Offering (IPO), in a combination of fresh issue and offer for sale in the ratio of 2:1. The IPO was oversubscribed by over 75 times with more than Rs 1.11 lakh crore being raised against the offer of Rs 1442 crores. The company, under the Ministry of Shipping, was listed in Bombay Stock Exchange and National Stock Exchange on August 11, 2017.
The IPO saw a strong interest from retail segment with over 20 lakh applications, the highest in the last decade. The QIB portion was over subscribed by over 63 times and the HNI portion was over subscribed by 287 times. Upon listing the shares in the exchange, the company opened at 20% increase, despite the markets being low. The company undertook very detailed roadshows in India, Far East, Europe and US. Resultantly, there were very positive market sentiments towards the IPO.
The proceeds of the fresh issue partly would be used for expansion projects. The projects are a dry dock at the Cochin Shipyard premises to accommodate bigger ships for building and repair and a ship repair facility in the adjacent Cochin Port Trust premises by setting up of a ship lift and transfer system.
The Cochin Shipyard was incorporated in the year 1972 as the first green field shipyard of India. As on date Cochin Shipyard Limited is the largest public sector shipyard in India in terms of dock capacity. CSL caters to clients engaged in the Defence sector in India and clients engaged in the commercial sector worldwide for Shipbuilding and Ship Repair. In addition to shipbuilding and ship repair, CSL also offers marine engineering training. The company has exported around 45 ships to overseas customers and has the pride of building the first Indigenous Aircraft Carrier for the Indian Navy. The company's diversified business profile and presence in multi maritime segments have resulted in strong financial fundamentals.