The government today initiated the share sale process of Cochin Shipyard asking merchant bankers to express interest for managing its initial public offer (IPO).
The IPO of over 3.39 crore equity shares would include issuance of over 2.26 crore fresh equity shares and sale of 10 per cent of government stake or over 1.13 crore shares to public.
The government will appoint up to three merchant bankers for managing the IPO.
The merchant bankers have to submit their bids by February 18, the finance ministry said while inviting expression of interest (EoI) for appointing merchant bankers.
A part of the public offering may be reserved for employees of the company. The eligible employees and retail investors may be offered shares at a discount of 5 per cent on the issue price.
Miniratna PSU Cochin Shipyard, incorporated in 1972, is under the administrative control of the Shipping Ministry.
In the last four decades, the company has emerged as a front runner in the Indian shipbuilding and ship repair industry.
The yard has the capacity to build ships upto 1.10 lakh Dead Weight Tonnage (DWT) and undertake repairs to ships of upto 1.25 lakh DWT. CSL has built the biggest ships in India.
The authorised and paid up share capital of the Company are Rs 250 crore and Rs 113.28 crore respectively. Presently the entire share capital is held by the Government of India.
