The state owned Cochin Shipyard on Friday 11 Aug ‘17 had an impressive
debut on the bourses despite a slump in the markets.
In the morning session on August 11, the stock was trading over 22 per cent
up at Rs 522 a share against the issue price of Rs 432.
The Initial Public Offer (IPO) was oversubscribed 76 times, with the high
net worth individual segment witnessing a subscription of over 288 times of the
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 over-subscription meant investors had put Rs 1.11 trillion or 2.8 per
cent of the country's GDP, bankers to the issue said ahead of the listing.
Shipping Minister Nitin Gadkari said the investor confidence shows the
faith in the government's economic policies. The shipyard, whose almost the
entire revenue of Rs 2,059 crore last year came from government, should
diversify and cater to the private sector as well he said.
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.