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Aug 10, 2017 11:35 AM IST | Source: Moneycontrol.com

State-run Cochin Shipyard to list shares on August 11

The premium of at least Rs 100 could be possible because of overwhelming response received by the issue, analysts feel.

State-run Cochin Shipyard to list shares on August 11

Moneycontrol News

Cochin Shipyard, the largest public sector shipyard company, will make a debut on exchanges on Friday, August 11. The issue price is fixed at higher end of price band of Rs 424-432 per share.

According to the grey market premium, the listing price is likely to be at a premium of around Rs 120-150 per share. It meant the opening price for the stock could be around Rs 550.

The premium of at least Rs 100 could be possible because of overwhelming response received by the issue, analysts feel.

The public issue was oversubscribed 76.19 times, with receiving bids for 258.9 crore equity shares against IPO size of 3.39 crore shares.

The reserved portion of qualified institutional investors oversubscribed 63.52 times while the portion meant for non-institutional investors saw a subscription of 288.87 times and retail 8.51 times.

Cochin Shipyard 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 receive Rs 978.74 crore through the fresh issue of shares. It will utilise fresh issue proceeds for setting up of a new dry dock within the existing premises (around Rs 443 crore); setting up of an international ship repair facility at Cochin Port Trust area (around Rs 229.5 crore); and general corporate purposes.

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.
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