India’s Cochin Shipyard has raised INR 14.4 billion (USD 224.8 million) from its initial public offering (IPO) after being listed in Bombay Stock Exchange and National Stock Exchange on August 11, 2017.
The country’s Ministry of Shipping said that the company issued the IPO which was a combination of fresh issue and offer for sale in the ratio of 2:1. The IPO was oversubscribed by over 75 times.
After listing the shares in the exchange, they opened at 20% increase despite the markets being low. The company informed that there was very positive market sentiment towards the IPO.
Cochin Shipyard will use the proceeds of the fresh issue part, totaling some INR 9.61 billion (USD 149.7 million), to partly fund two expansion projects costing up to INR 28 billion (USD 436.3 million).
The two projects include a dry dock at the Cochin Shipyard premises to accommodate bigger ships for building and repair and a ship repair facility in the adjacent Cochin Port Trust premises by setting up a ship lift and transfer system.
Additionally, the issue saw a strong interest from the retail segment with over 2 million applications, the highest in the last decade. The QIB portion was over subscribed by over 63 times and the HNI portion was over subscribed by 287 times.