Shipyard unions on warpath against IPO proposal

: Trade unions united under the Cochin Shipyard Joint Action Front have urged the Central government and the yard management to desist from the proposed IPO (initial public offering) ostensibly to raise funds for infrastructure expansion and disinvestment plan.

Strongly protesting the move, the unions’ combined general body warned of stringent measures, including an indefinite strike as a last resort if the government went ahead with the proposal.

The proposal envisages issue of an IPO of 3,39,84,000 equity shares of Rs 10 each amounting to an equity capital of Rs 33.984 crore. It comprises fresh issue of 2, 26, 56,000 equity shares and sale of Government of India’s stake in the yard worth 1,13,28,000 equity shares of Rs 10 through a public offering in the domestic market.

Workers of the yard affiliated to various trade unions, on Wednesday, shouted slogans against the move and an Agitation Assistance Committee is proposed to be set up on January 21.

“We will make the public aware of the perils of the move by holding public meetings at Mattancherry, Kaloor, Tripunithura and Marine Drive to begin with. There will be a token strike and if the government fails to heed the warning, we will go on indefinite strike,” R. Chandrasekharan, president of the Joint Action Front, told The Hindu .

The agitating unions would organise a ‘shipyard protection chain’ covering the boundaries of the yard in a symbolic gesture in early February.

In response, Madhu S. Nair, chairman and managing director of the yard, told The Hindu that the rationale behind the move was explained to the unions. “They are fully seized of the need for expansion. Only, they want the money required for this to be raised by other means.

For us, the prudent method is to mobilise funds through a mix of debt and equity, not debt alone — which we fear will lead us into a debt-trap. As regards disinvestment, we told them that it is consistent with the stated policy of the government and that it would only be disinvesting 10 per cent of its stake.

The shipyard unions’ combine warns of stringent measures, including an indefinite strike