The initial public offering of Cochin Shipyard Ltd., the first by a state-owned shipbuilder, was subscribed 0.92 times on the first day of bidding.
The Rs 1,468-crore offer received bids for 3.1 crore shares against the 3.39 crore shares available, according to data available on the stock exchange as of 5 pm.
The highest demand came from retail investors who bid for 1.8 crore shares against the 1.16 crore shares on offer. The portion reserved for them was subscribed 1.57 times. Qualified institutional buyers bid for 1.1 crore shares or 0.72 times the shares on offer. Demand from high networth individuals remained subdued as the category was subscribed 0.22 times.
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.
Also Read: India's Only Profitable Shipbuilder's IPO Opens
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