CCEA approves Cochin Shipyard’s IPO

The funds are proposed to be utilized for infrastructure expansion of CSL including projects such as International Ship Repair Facility (ISRF) and New Dry Dock project for building larger vessels /LNG Carriers.

Dec 10, 2015 08:12 IST India Infoline News Service

The Cabinet Committee on Economic Affairs (CCEA) has approved the IPO of Cochin Shipyard Ltd on November 18, 2015, according to the Ministry of Shipping.

The Ministry said in a statement that the total shares that will be made available for subscription are 3,39,84,000 equity shares of Rs. 10 each consisting of a fresh Issue of 2,26,56,000 equity shares of Rs. 10 each amounting to Rs. 22,65,60,000 and sale of 1,13,28,000 equity shares of Rs.10 each amounting to Rs. 11,32,80,000.

The funds likely to be generated would depend upon the listing price of a share which is subject to market conditions. The funds are proposed to be utilized for infrastructure expansion of CSL including projects such as International Ship Repair Facility (ISRF) and New Dry Dock project for building larger vessels /LNG Carriers.

Some trade unions like Shipyard Employees Sanghhave expressed their opposition to disinvestment of CSL. Cochin Shipyard has deliberated the issue with trade unions. 

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