Cochin Shipyard IPO oversubscribed 3.93 times on third day

The much-awaited IPO of Cochin Shipyard Limited has opened for subscription on August 1. The issue will close on August 3, 2017.
 
The total issue size consists of 3,39,84,000 shares. The IPO attracted total bids of 13,36,81,620 shares and total bids at a cut-off price of 4,58,54,040 shares as of 1100 hours on August 3. NSE data shows that the issue got subscribed by 3.93 times.
 
As of August 2, 1700 hours, the IPO subscription data on NSE shows that the qualified institutional buyers (QIBs) segment got oversubscribed by 3.41 times, non-institutional investors by 0.82 times, retail individual investors(RIIs) by four times and employees by 0.29 times.
 
The IPO follows a book building process. The price band for the issue is set at Rs 424 to Rs 432 per equity share each having a 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 (a) setting up of a new dry dock within the existing premises of the company (dry dock), (b) setting up of an international ship repair facility at Cochin Port Trust area (ISRF) and (c) 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.