Cochin Shipyard files IPO prospectus with regulator

Kochi, March 24 : State-run Cochin Shipyard Ltd on Friday filed its Draft Red Herring Prospectus with market regulator SEBI for its Initial Public Offering (IPO) of 3.3-crore equity shares of Rs 10 face value.

"The IPO comprises of 33,984,000 shares, including fresh issue of 22,656,000 shares and offer for sale of 11,328,000 shares," said the city-based largest shipyard in dock capacity in a statement here.

The company will decide the price band of the public issue with its book running lead managers.

The equity shares will have a face value of Rs 10 and the price band would be decided in consultation with the Book Running Lead Managers (BRLMs).

"The issue proceeds (net) will be used to set up a new dry dock in our shipyard and an international ship repair facility at Cochin Port Trust area," said the statement.

SBI Capital Markets Ltd, Edelweiss Financial Services Ltd and JM Financial Institutional Securities Ltd are the issue's lead managers, while Link Intime India Ltd is its Registrar.

According to global analytical and rating firm Crisil, Cochin Shipyard, which caters to the defence and commercial sector, offers marine engineering training in addition to ship-building and ship repair at its two docks.

"First dock is used for ship repair and second for ship-building. The repair dock enables to anchor ships up to 125,000 dead weight tonnage (DWT), while the ship-building dock allows vessels up to 110,000 DWT," added the statement.