India’s Cochin Shipyard IPO Oversubscribed 75 Times, Collects USD 225 Mn


India’s biggest shipyard, Cochin Shipyard is in the news as it achieved a landmark IPO after being listed in the Bombay Stock Exchange and National Stock Exchange on the 11th of August 2017. From its Initial Public Offering (IPO), it has raised INR 14.4 billion amounting to approximately USD 225 million.

Despite the markets being low, after the listing, they opened at 20% increase. Indian Ministry of Shipping confirmed that the IPO was oversubscribed by over 75 times.The IPO issued by the company was a 2:1 ratio of fresh issue and offer for sale respectively.

To add to this, the retail segment offered a strong interest with over 2 million applicants, the highest in the decade.The QIB portion was over subscribed by over 63 times and the HNI portion was over subscribed by 287 times.

The ministry stated, “The proceeds of the fresh issue part of the IPO, totalling approximately Rs 961 crores will be used by CSL for part funding two expansion projects costing Rs 2,800 crores.”

The funding will cover two projects which 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.

Incorporated in 1972, Cochin Shipyard hold the distinction of being the first green field shipyard of India. In terms of dock capacity, it is the largest public sector shipyard in the country. It offers marine engineering training and its clientele include the commercial sector worldwide for Shipbuilding and Ship Repair and the Defence sector in India.