The public sector Cochin Shipyard Limited (CSL) is learnt to have handpicked a syndicate of three merchant bankers for its proposed initial public offer (IPO), slated for launch either this year-end or in the first quarter of 2017.
At the end of a due process of selection, the yard has zeroed in on SBI Capital Markets Ltd, JM Financial Institutional Securities Ltd and Edelweiss Financial Services Ltd. An offer of appointment will soon be sent to them. The IPO, which will see the yard sell 3.39 crore equity shares, including fresh shares, is to fund the expansion plans of the yard. Topping its infrastructure growth plans is the construction of a drydock —300 metres in length and 75 metres wide — to take up the construction and repair of vessels with the dead weight tonnage (DWT) of up to 1,25,000. The dock, which will give the yard the edge to carry out the construction of future aircraft carriers for the Navy, is expected to cost over Rs. 1,300 crore.
Ship repair facility
Also on the cards is a full scale ship repair facility with a 6,000 tonne shiplift on the Cochin Port premises. Work is already under way for this project and repairs of smaller vessels are being undertaken there. It is estimated to cost another Rs. 970 crore when fully operational.
Madhu S. Nair, chairman and managing director of the yard, told The Hindu during a recent interaction that the proposed IPO was the safest route to mobilise funds for big ticket projects.
TUs are crying foul
over the government’s announcement
of disinvestment
of its shares.
