Solid Listing: Cochin Shipyard outperforms market; ends at day's high, up 22%

Cochin Shipyard, the largest public sector shipyard company, outperformed in a bad market on Friday as the stock closed at day's high.

It settled at Rs 528.15, up 22.26 percent over its issue price of Rs 432, which was warranted due to huge subscription of 76 times and also because of healthy earnings growth in last five years.

The stock did not break its issue price due to weak market sentiment but that capped its upside. The day's low was Rs 435 on the National Stock Exchange.

It settled at Rs 440.15 in pre-opening trade and the opening price was Rs 461.

Cochin Shipyard caters to clients engaged in defence sector in India and clients engaged in commercial sector worldwide. In addition to shipbuilding and ship repair, it also offers marine engineering training.

The company raised more than Rs 1,450 crore through its share sale offer that comprised of a fresh issue of 2.2656 crore shares and an offer for sale of 1.1328 crore shares by The President of India.

The largest public sector shipyard company will utilise fresh issue proceeds of Rs 978.74 crore for setting up of a new dry dock within the existing premises; setting up of an international ship repair facility at Cochin Port Trust area; and general corporate purposes.