Cochin Shipyard IPO opens for subscription

Cochin Shipyard Limited’s IPO has opened for subscription today. The issue is going to close on August 3, 2017.
 
The total issue size consists of 3,39,84,000 shares. The IPO attracted total bids of 10,30,470 shares and total bids at cut-off price of 9,36,660 shares as of 1045 hours on August 1. NSE data shows that the issue got subscribed by 3%.
 
The IPO is going to follow the book-building process wherein the price band for the issue is set at Rs 424 to Rs 432 per equity share, each having face value of Rs 10. The issue consists of a fresh issue of 22,656,000 equity shares and an offer for sale of 11,328,000 equity shares by the president of India. The issue and the net issue will constitute 25% and 24.39% respectively of the post-issue paid-up equity share capital of the company.
 
The company proposes to utilise the net proceeds of the issue for setting up a new dry dock within the existing premises of the company; setting up an international ship repair facility at Cochin Port Trust area (ISRF); and general corporate purposes.
 
SBI Capital Markets, Edelweiss Financial Services and JM Financial Institutional Securities are the Book Running Lead Managers (BRLMs) to the issue. The equity shares of the company are proposed to be listed on BSE Limited and National Stock Exchange of India Limited.