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Cochin Shipyard IPO a huge hit, oversubscribed 76 times on final day

New Delhi: The initial share sale offer of Cochin Shipyard garnered strong demand from investors with the issue getting oversubscribed 76.12 times on the last day of the bidding on Thursday.

The IPO, to raise up to Rs 1,468 crore, received bids for over 258 crore shares against the total issue size of 3,39,84,000 shares, data available with the NSE till 1930 hours on Thursday showed.

The category reserved for qualified institutional buyers (QIBs) was oversubscribed 63.52 times, non-institutional investors 288.87 times and retail investors 8.28 times. Till close of bidding on Wednesday, the IPO was oversubscribed 3.16 times.

The IPO of public sector unit Cochin Shipyard is in a price band of Rs 424-432.

Cochin Shipyard. Reuters

Cochin Shipyard. Reuters

SBI Capital Markets, Edelweiss Financial Services and JM Financial Institutional Securities are the book running lead managers to the issue.

The proceeds of the offer for sale will be received by the largest shareholder - The Government of India, while the company will not receive any proceeds from the offer for sale. Through this IPO, Government of India is offloading 25 percent stake in Cochin Shipyard. and post the public issue, government's shareholding in the company will come down to 75 percent.

Cochin Shipyard's current shipbuilding order book includes Phase-II of the IAC for the Indian Navy, two 500 passenger cum 150 ton cargo vessels and two 1,200 passenger cum 1,000 ton cargo vessels for the Andaman and Nicobar Administration and a vessel for one of the Government of India's projects, Moneycontrol report said.

The company has recorded consecutive profits in last five fiscal years. Its total income has increased from Rs 1,660.45 crore and Rs 69.28 crore, respectively, during the fiscal year ending 2015 to Rs 2,208.50 crore and Rs 312.18 crore, respectively, in fiscal 2017 at a CAGR of 15.33 percent and 112.27 percent, respectively, the report said.

Updated Date: Aug 04, 2017 07:55 AM

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