Cochin Shipyard, India’s largest state-owned shipyard, is offering 3.4 crore shares to public through an initial public offer (IPO), which opens on Tuesday (August 1, 2017). The issue, priced in a range of R 424-432, will help the company raise around R 979 crore in fresh capital and would increase its paid up equity capital to R 136 crore. Investors can apply Cochin Shipyard IPO in lot sizes of 30 shares. The “Maharatna” company’s IPO will close on Thursday (August 3, 2017).
Here are five things to know about this offer:
1) Through this IPO, Government of India is offloading 25 per cent stake (1.13 crore shares) in Cochin Shipyard. Post this IPO, government’s shareholding in the company will come down to 75 per cent from 100 per cent now. The company is also raising fresh capital worth R 979 crore, which it plans to use to set up a new dry dock (with R 443 crore investment) and an international ship repair facility (with R 230 crore investment) at Cochin Port Trust area.
2) Cochin Shipyard provides both shipbuilding services (74 per cent of its revenue) and ship repair…