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.