Kochi: Shares in Cochin Shipyard Ltd rose more than 20 percent on their trading debut on Friday after the state-run company's 14.42 billion rupees ($224.7 million) initial public offering.
The stock was trading at 528.15 rupees by 0432 GMT, 22.25 percent higher than its IPO issue price of 432 rupees. Retail investors were issued shares at a discounted price of 411 rupees. The shipbuilder, which also repairs ships, had seen strong investor interest in the IPO with the sale last week being subscribed more than 76 times.
The company-the largest public sector shipyard in India in terms of dock capacity-caters to the defense sector as well as commercial sector worldwide. The initial public offer (IPO) comprised fresh issuance of 22,656,000 equity shares and an offer for sale of 11,328,000 equity scrips by the government.
Proceeds from the fresh issue are to be utilized towards setting up of a new dry dock within the existing premises of the company, setting up of an international ship repair facility at Cochin Port Trust area and for other general corporate purposes. SBI Capital Markets, Edelweiss Financial Services, JM Financial Institutional Securities managed the IPO.