 "Cabinet Committee approves Cochin Shipyard IPO")
The approval is for issue of an IPO to the public consisting of 3,39,84,000 equity shares of Rs 10 each amounting to an equity capital of Rs 33.984 crore of CSL consisting of fresh issue of 2,26,56,000 equity shares and sale of government's stake in CSL worth 1,13,28,000 equity shares of Rs 10, through a public offering in the domestic market according to Securities and Exchange Board of India (Sebi) rules and regulations, according to PIB release.
Management of CSL was not available for comment immediately.
The money will be utilised to supports its expansion in short and medium term, setting up of an International Ship-repair Facility at Cochin Port Trust area, and, setting up of a large dry dock within the CSL premises to take up construction of larger ships such as large sized Aircraft Carriers, VLCCs etc. and to take up underwater repairs to rigs and semi submersibles.
"The disinvestment of the government's stake in CSL is in line with the government's decision on the issue. It will raise resources for the government due to the sound financial condition of CSL. There would be no financial outgo from the government on account of the issue of shares. Instead, the government would earn revenue due to sale of its shares to the public," said in the release.
CSL was incorporated in 1972 as a fully government-owned undertaking and was conferred miniratna I status in 2008.