Cochin Shipyard IPO Subscribed More Than 76 Times On Final Day

The initial public offering of Cochin Shipyard Ltd. was subscribed more than 76 times on the third and final day of bidding led by high net-worth individuals.

The IPO received bids for 258.6 crore shares against the total issue size of 3.39 crore shares, according to the data from lead banker JM Financial as of 7 pm on Thursday.

The segment reserved for high net-worth individuals was subscribed 289 times the number of shares reserved for them. The portion allotted for qualified institutional buyers was subscribed close to 64 times. Retail investors subscribed 8.28 times the number of shares on offer for them.

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.

Also Read: India's Only Profitable Shipbuilder's IPO Opens Today

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.