Cochin Shipyard IPO Oversubscribed 71 Times on Final Day | CORPORATE ETHOS

Cochin Shipyard IPO Oversubscribed 71 Times on Final Day

By: | August 3, 2017
Cochin Shipyard

Aug 3: On the third and final day of its bidding, the Rs 1,468-crore initial public offering (IPO) of Cochin Shipyard Ltd (CSL), the country’s largest public sector shipyard in terms of dock capacity, was subscribed over 71 times, as per data available with the NSE.

The data shows that the public offer has received bids for 242.13 crore shares against the total issue size of 3.3984 crore shares offered by the company.

It was on August 1st, Tuesday, the much-awaited IPO of Cochin Shipyard opened for subscription. The equity shares of the company are proposed to be listed on both BSE and NSE.

On the first day, the share sale was subscribed 0.92 times whereas it was oversubscribed 3.16 times on Wednesday, the second day of the issue. The IPO is in a price band of Rs 424-432 per equity share each having a face value of Rs 10 and will close today. The issue consists of a fresh issue of 2.2656 crore shares and an offer for sale of 1.1328 crore shares. CSL will receive Rs 978.74 crore through the fresh issue of shares.

According to CSL, it proposes to utilise the net proceeds of the issue for setting up of a new dry dock within the existing premises of the company along with setting up of an international ship repair facility at Cochin Port Trust area. The fund will also be used for general corporate purposes, it said.

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