Cochin Shipyard
Reuters

Initial Public Offering (IPO) of Cochin Shipyard got oversubscribed by 76 times on the last day of the bidding on Thursday.

The public issue was oversubscribed 75.99 times and receiving bids for Rs 258.25 crore equity shares against the IPO size of 3.39 crore shares, as per data available on the exchange.

The reserved portion of qualified institutional investors oversubscribed 63.52 times while the portion meant for non-institutional investors saw a subscription of 288.87 times and retail 7.91 times, MoneyControl reported.

The country's largest public sector shipyard aims to raise about Rs 1,400 crore by issuing a total 33.97 million shares as part of efforts to expand and construct larger vessels as well as undertake ship repair and fabrication.

The government is divesting 11.32 million shares through an offer for sale while the company is issuing 22.65 million fresh shares. Post the IPO allotment, the government will hold a 75 percent share in the firm while the balance 25 percent shares will be held by the public.

The company fixed a price band of Rs 424-432 per equity share of Rs 10 face value for its IPO. The issue will constitute 25 percent of the post issue paid-up equity share capital.

Cochin Shipyard caters to clients engaged in defence sector in India and commercial sector worldwide. In addition to shipbuilding and ship repair, it also offers marine engineering training.

SBI Capital Markets, Edelweiss Financial Services and JM Financial Institutional Securities are the book running lead managers to the issue.

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