Cochin Shipyard IPO:Anchor it in your portfolio for six months

Incorporated in 1969, Cochin Shipyard Limited is one of the largest public sector shipyard in India in terms of dock capacity. They operates a shipyard that provides ship building and ships/offshores repair service.

Cochin Shipyard’s shipbuilding activities include the construction of vessels for clients operating in the defense and in the commercial sector shipping industry. In addition to shipbuilding and ship repair, they also offers marine engineering training programs as well as offer additional courses, including 6 months practical training for marine engineering  students from colleges affiliated to universities, fire prevention and fire fighting , and elementary first aid training through its marine engineering  training institute; and chemical, mechanical, and non destructive testing services of metals, welds, and alloys.

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They have and delivered vessels across broad classification including bulk carriers, tankers, platform supply vessels(PSVs) , Anchor handling Tug supply vessels (AHTSs) , barges, bollard pull tugs, passenger vessels and fast patrol vessels(FPVs).They are currently building India’s first Indigenous Aircraft Career(IAC)  for the Indian Navy.

Company Promoters:

The Promoter is the President of India acting through the Ministry of Shipping. the Promoter, along with its nominees, currently holds 100% of the pre-Issue paid-up equity share capital of the Company. After this Issue, the Promoter shall hold 75% of the post Issue paid-up equity share capital of the Company. As the Promoter is the President of India, acting through the Ministry of Shipping, disclosures on the Promoter Group (defined in regulation 2(zb) of the SEBI ICDR Regulations) as specified in Schedule VIII of the SEBI ICDR Regulations have not been provided.

Company Financials:

Summary of financial Information (Consolidated)
Particulars For the year/period ended (in Rs. Million)
31-Mar-17 31-Mar-16 31-Mar-15
Total Assets 33,164.37 33,488.61 28,912.85
Total Revenue 22,085.01 20,968.81 16,604.52
Profit After Tax 3,121.82 2,917.52 692.82

Objects of the Issue:

Company proposes to utilize the Net Proceeds towards funding of the following objects:

  1. Setting up of a new dry dock within the existing premises of the Company (“Dry Dock”);
  2. Setting up of an international ship repair facility at Cochin Port Trust area (“ISRF”); and
  3. General corporate purposes.

Issue Detail:

  • ISSUE OPENS: Aug 1, 2017 – Aug 3, 2017
  • ISSUE TYPE: Book built issue IPO
  • Issue Size:33,984,000 Equity Shares of Rs 10 aggregating up to Rs 1,468.11 Cr
    ›  Fresh Issue of 22,656,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr                ›  Offer for Sale of 11,328,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr
  • FACE VALUE: Rs 10 per equity share
  • Issue Price: Rs 424 – Rs 432 Per Equity Share
  • Market Lot: 30 Shares
  • Minimum Order Quantity: 30 Shares
  • Listing At: BSE, NSE

Discount of Rs 21 is offered to RII and Employee. Discounted price band is Rs 403 – Rs 411 for Retail and Employee.

Company Contact details:

Cochin Shipyard Ltd
Administrative Building,
Cochin Shipyard Premises,
Perumanoor, Kochi – 682015
Phone: +91 (484) 2501306
Fax: +91 (484) 2384001
Email: secretary@cochinshipyard.com
Website: http://www.cochinshipyard.com