Cochin Shipyard Ltd has completed its landmark IPO which was oversubscribed 75 times attracting more than Rs 1.11 lakh crore, as against the offer size of Rs 1,442 crore, the government said as per the PTI report. Parts of the IPO proceeds will be utilized for expansion projects of the state-run entity. CSL, under the shipping ministry, was listed on BSE and NSE on August 11, 2017. “The company has raised Rs 1,442 crore from the IPO which has been a combination of fresh issue and offer for sale in the ratio of 2:1,” the ministry said in a statement. “The IPO was oversubscribed by over 75 times with more than Rs 1.11 lakh crore being raised against the offer of Rs 1,442 crore,” it said.
The issue also saw a strong interest from the retail segment with over 20 lakh applications, the highest in the last decade. The qualified institutional buyer’s portion was over- subscribed by over 63 times and the HNI portion was over- subscribed by 287 times. On listing, the stock opened 20 percent higher despite the markets being low, the statement said, adding that the company had undertaken very detailed roadshows in India, Far East, Europe, and the US. “The proceeds of the fresh issue part of the IPO, totaling approximately Rs 961 crores will be used by CSL for part funding two expansion projects costing Rs 2,800 crores,” it said. The projects are – a dry dock at the Cochin Shipyard premises to accommodate bigger ships for building and repair and a ship repair facility in the adjacent Cochin Port Trust premises by setting up of a ship lift and transfer system. Cochin Shipyard was incorporated in the year 1972 as the first green field shipyard of India.
As on date, it is the largest public sector shipyard in India in terms of dock capacity. CSL caters to clients engaged in the Defence sector in India and clients engaged in the commercial sector worldwide for Shipbuilding and Ship Repair. In addition to shipbuilding and ship repair, CSL also offers marine engineering training. The company has exported around 45 ships to overseas customers and has the pride of building the first Indigenous Aircraft Carrier for the Indian Navy. The company’s turnover rose to Rs 2,059 crore in 2016-17 from Rs 1,404 crore for the 2012-13. The Profit After Tax for the 2016-17 was Rs 322 crore, while the net-worth of the company as on March 2017 was Rs 2,031 crore.