The initial public offering (IPO) of Cochin Shipyard was subscribed 3.16 times on Wednesday with investors bidding for 10.72 crore shares out of the 3.39 crore shares on offer. Qualified Institutional Buyers (QIB) bid for 5.64 crore shares, non-institutional investors (NII) bid for 41.03 lakh shares of the 49.74 lakh shares reserved for them, bidding 0.82 times. Retail investors bid for 4.64 crore shares of the 1.16 crore shares reserved.
Cochin Shipyard has priced its initial public offering, aimed at raising Rs 1,468 crore, with a price band of Rs 424-432. The shares have a face value of Rs 10. Employees and retail investors are given discount of Rs 21 per equity share. The company proposes to utilise the net proceeds for setting up of a new dry dock within the existing premises of the company, international ship repair facility at Cochin Port Trust area and for general corporate purposes.
Cochin Shipyard is the largest public sector shipyard in India in terms of dock capacity and fully-owned by the government. The ship repair dock of Cochin Shipyard is one of the largest in India and enables to accommodate vessels with a maximum capacity of 125,000 DWT.