Cochin Shipyard to raise up to $229m via IPO

India’s state-run Cochin Shipyard has filed IPO papers with the Securities and Exchange Board of India (SEBI) and is looking to raise 1,400-1,500 crore ($214 – $229m) via issuing around 34m new shares.

The shipyard will use the proceeds to fund the construction of a new dry dock and an international ship repair facility at Cochin Port Trust area as well as for general corporate purposes.

The IPO is part of the government’s disinvestment target set for the forthcoming financial year. The government currently owns 100% stake in Cochin Shipyard. It will divest a 10% stake in addition to issuing fresh shares representing a 15% stake through the IPO. After the issue and listing, the government’s stake in the company will stand at 75% in compliance with SEBI’s minimum public shareholding norms.

Cochin Shipyard’s IPO application was approved by the government in November 2015, and later the plan was delayed.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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