The initial public offering of state-run Cochin Shipyard Ltd was almost fully covered while that of CX Partners-backed Security and Intelligence Services (India) Ltd has received bids for almost two times the shares on offer.
Cochin Shipyard’s offering was covered 92%, having received bids for 31.31 million shares of the total 33.98 million on offer, at the end of the first day of the issue on Tuesday, stock-exchange data showed.
The retail book was covered 1.57 times and the portion set aside for qualified institutional buyers was covered 71.5%. The part reserved for non-institutional investors, comprising wealthy individuals and corporate clients, was 22% subscribed.
Cochin Shipyard is seeking a valuation of as much as Rs 5,872 crore ($912 million) through the IPO, which does not have an anchor book and will close on Thursday.
The company last week set a price band of Rs 424-432 per share for the IPO. At the upper end of the price band, the IPO size works out to Rs 1,468 crore. Cochin Shipyard will raise roughly Rs 980 crore via a fresh issue of 22.65 million shares while the government, acting as the sole selling shareholder, will mobilise the remaining by selling 11.32 million shares.
Overall, the IPO will result in a stake dilution of 25% on a post-issue basis. This will help the company comply with the Securities and Exchange Board of India’s…