The government is planning to list Cochin Shipyard and has invited bids from merchant bankers for managing the IPO.
The Initial public offering (IPO) of Cochin Shipyard will be of over 3.39 crore shares. This would include fresh issue of over 2.26 crore shares and government diluting 10 per cent stake or over 1.13 crore shares.
The merchant bankers interested in managing the IPO have to submit their bids by June 6, the Department of Investment and Public Asset Management (DIPAM) said while inviting Expression of Interest.
The net worth of the Company as on March 31 was Rs 1,838 crore. The profit after tax of the Company was Rs 276 crores respectively.
Government currently holds 100 per cent stake in the PSU, which is under the administrative control of Shipping Ministry.
The overseas roadshows for Cochin Shipyard stake sale are likely to be held in the United States, Europe and Far East, DIPAM said.
The proceeds from fresh issue of shares under the IPO would be utilised to fund the company's future growth plans.
"A part of the public offering may be reserved for employees of the company," DIPAM said.
The eligible employees and retail investors may be offered shares at a discount of 5 per cent on the issue price.
The Budget has set a disinvestment target of Rs 56,500 crore for current fiscal. Of this, Rs 36,000 crore is estimated to come from minority stake sale in PSUs, and the remaining Rs 20,500 crore is projected to come from strategic sale in both profit and loss-making companies.
Government has already raised Rs 2,700 crore through stake sale in NHPC last month.
