Cochin Shipyard IPO starts today as co aims to raise over Rs 1,400 crore; key points you need to know

Cochin Shipyard has hit the capital market starting today with initial share sale offer to raise over Rs 1,400 crore. Bidding for shares of Cochin Shipyard has begun today and the public issue will conclude on 3 August. IPO-bound public sector unit Cochin Shipyard aims to raise up to Rs 1,468 crore through its share sale offer. [caption id=“attachment_2411792” align=“alignleft” width=“380”]  Reuters[/caption] Cochin Shipyard has fixed the price band at Rs 424-432 for its IPO of 33,984,000 equity shares. The company will receive Rs 978.74 crore through the fresh issue of shares. SBI Capital Markets Limited, Edelweiss Financial Services Limited and JM Financial Institutional Securities Limited are the book running lead managers to the offer. 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. According to a Mint report citing Angel Broking, Cochin Shipyard’s shares are valued at 15.7 times its FY17 earnings per share of Rs. 28 at the upper end of the price band.