Employees united under various trade unions laid siege to the Cochin Shipyard at the gates for an hour up to 8.30 a.m. on Wednesday to mark their protest against the management for going in for a public issue of the yard’s shares.
The unions, which resisted the move to list the profit-making public sector yard on the bourses right from the beginning, would continue the siege daily till August 3, the final day of the initial public offering (IPO), which gets under way on August 1. The public issue includes fresh issue of 2.26 crore equity shares by the company and sale of 1.13 crore equity shares held by the Central government, with a price band of ₹424 to ₹432 per equity share.
The yard has always maintained that the sale, in line with the disinvestment policy of the Centre, is intended to generate funds for its capital expansion. A part of the ₹1,440 crore thus raised would be used for the construction of a large dockyard on the yard campus and for the setting up of an International Ship Repair Facility (ISRF) on the Cochin Port premises.
N. Satheesh, working president of the Shipyard Employees’ Federation (CITU), said the only way out for the employees now was to intensify their protest. “The token siege will continue every day. Simultaneously, we will see if there’s a possibility of seeking the court’s intervention. When they say the plan is to raise ₹1,440 crore by selling 25 per cent of the yard’s shares, one wonders whether the yard’s total worth is a little understated. But we must examine it before moving court.”
V. Kala, spokesperson for the yard, said a meeting with the investors and bidders was on right now and SEBI-approved registrars would scrutinise the bids before the price would be fixed on August 4.
“All clearances have been obtained for the drydock construction, which is slated to begin in January, 2018. As for ISRF, eco clearance is awaited,” she said.
