The initial public offering of Cochin Shipyard Ltd. was subscribed more than three times on the second day of bidding as qualified institutional buyers took charge.
The IPO received bids for 10.7 crore shares against the total issue size of 3.39 crore shares, data from lead banker JM Financial showed as of 5:00 pm.
Qualified institutional buyers bid for 5.6 crore shares, subscribing almost 3.4 times the number of shares reserved for them. The demand from retail investors remained high as the portion allotted to them was subscribed 4 times. Shares reserved for high net-worth individuals was subscribed 0.8 times.
The state-owned shipbuilder aims to raise up to Rs 1,468 crore through its share sale.
Cochin Shipyard, which built India's first indigenous aircraft carrier, the INS Vikrant, has fixed the price band of its IPO at Rs 424-432 apiece. If the offer sails through, it will make the company India's only profitable shipbuilder in the listed space.
The shipbuilder wants to use the proceeds from the offer to set up a new manufacturing facility. After the IPO, the government's stake will come down by 10 percentage points to 75 percent.
Cochin Shipyard has the second-largest shipbuilding capacity in India and the highest market share in ship repairs.
SBI Capital Markets, Edelweiss Financial Services and JM Financial Institutional Securities are the book running lead managers to the issue.
Also Read: India's Only Profitable Shipbuilder's IPO Opens On August 1
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