Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,884.50-10.95
Stock Analysis, IPO, Mutual Funds, Bonds & More

Cochin Shipyard IPO to open on August 1; may raise Rs 1,468 crore

The company aims to raise up to Rs 1,468 crore via the IPO.

, ET Bureau|
Updated: Jul 25, 2017, 07.14 PM IST
0Comments
The issue is priced at Rs 424 to Rs 432 per share. It comes with a discount of Rs 21 per share for retail and employees.
The issue is priced at Rs 424 to Rs 432 per share. It comes with a discount of Rs 21 per share for retail and employees.
Mumbai: Cochin Shipyard, India's biggest public sector ship builder, will launch its initial public offer on August 1.

The company aims to raise up to Rs 1,468 crore via the IPO. Of that, as much Rs 489 crore will come from an offer for sale by the government. The rest will come via a fresh issue of shares by the company. The issue is priced at Rs 424 to Rs 432 per share. It comes with a discount of Rs 21 per share for retail and employees.

The money from the IPO will be used to fund its expansion plans. Cochin Shipyard has a capital expenditure plan worth over Rs 3,000 crore over three years. This includes a dry dock that will be used to build larger ships.

A dry dock is a narrow basin or vessel that can be flooded to allow a load to be floated in, then drained to allow that load to come to rest on a dry platform. Dry docks are used for the construction, maintenance, and repair of ships, boats, and other watercraft.

Cochin Shipyard also plans to invest in a 42 acre ship repair facility. It is building the country's first indigenous aircraft carrier.

An agile shift in focus towards more lucrative business segments has made sure Cochin Shipyard is insound financial health despite overarching industrial problems of overcapacity which has hit businesses of shipyards across the world.

The company has in the last few years diversified towards defence contracts. About 75% of its shipbuilding revenue comes from defence while the rest come from commercial contracts, its chairman Madhu S Nair had told ET in an interview last year. Five years back, defence constituted 40% of its shipbuilding revenues. Its total order book as of March 2017 totalled Rs 2936 crore.

Also, the company has rapidly grown its ship repair business. As of last year, the segment contributed 23% to its overall revenue from a miniscule chunk a few years earlier.
Read more on

Also Read

Are IPOs injurious to wealth?

Saudi Aramco will not market IPO in US

RailTel IPO process gains momentum

Burger King India files papers for IPO

Railways protest over under-pricing of IRCTC IPO

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service