Cochin shipyard's stock prices rose to an all time high of over ten per
cent on October ten as the country's largest ship maker emerged as the lowest
bidder and expected to bag the prestigious order to supply eight anti submarine
shallow water vessels to Indian Navy for Rs 5400 crores.
The vessels are due to be delivered in the next five years. As it is the
company's order book position was comfortable at Rs 3000 crores when the
company was listed in the market last month. By bagging the Indian Navy's
contract the order position of the shipyard is likely to swell to nearly Rs
twelve thousand crores.
The shipyard is also likely to receive an order for building an aircraft
carrier when the order book will go up further by another Rs twelve thousand
The shipyard is ploughing the funds received from the recent public issue
to set up a large shipbuilding dry dock and an international ship repair
facility. Due to limited capacity in the ship yard it has rejected at least 25
orders every year.
The new capacity addition program will see the company repair broader range
of vessels and boost the ship repairing revenues considerably.