MUMBAI, July 25, 2017 (GNS) : Cochin Shipyard Limited (“Company”), the largest public sector shipyard in India in terms of dock capacity, as of March 31, 2015, according to the CRISIL Report will be launching its initial public offering (“IPO” or the “Issue”) which is scheduled to open on August 1, 2017 and Issue Closing Date – August 3, 2017, with a price band of Rs. 424 – Rs. 432 per Equity Share of face value of Rs. 10 each of the Company (the “Equity Shares”).
The IPO consists of 33,984,000 Equity shares of face value of Rs 10 each (“Equity Shares”) of the Company. The Issue consists of a fresh issue of 22,656,000 Equity Shares and an offer for sale of 11,328,000 Equity Shares by the President of India (“Offer for Sale”, and “Selling Shareholder”). The Issue includes a reservation of up to 824,000 Equity Shares for subscription by eligible employees (as defined herein) (“Employee Reservation Portion”). The Issue less Employee Reservation Portion is referred to as the Net Issue.
The Company proposes to utilize the Net Proceeds of the Issue for (i) Setting up of a new dry dock within the existing premises of the Company (“Dry Dock”), (ii) Setting up of an international ship repair facility at Cochin Port Trust area (“ISRF”) and (iii) General corporate purposes.
In terms of Rule 19(2)(b)(iii) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”), the Issue is for at least 10% of the post-Issue paid-up Equity Share capital of the Company. In accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“SEBI ICDR Regulations”), the Issue is being made through the Book Building Process wherein 50% of the Net Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (“QIB Portion”). 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price.
Further, not less than 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Issue Price. Further, 824,000 Equity Shares shall be reserved for allocation to Eligible Employees, subject to valid bids being received at or above the Issue Price. All potential Bidders shall mandatorily participate in the Issue through an Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”).
The Issue and the Net Issue will constitute 25% and 24.39% respectively, of the post Issue paid-up Equity Share capital of the Company.
SBI Capital Markets Limited, Edelweiss Financial Services Limited, and JM Financial Institutional Securities Limited are the Book Running Lead Managers (“BRLMs”) to the Issue. The Registrar to the Issue is Link Intime India Private Limited.
The Equity Shares of the Company are proposed to be listed on BSE Limited and National Stock Exchange of India Limited.ENDS.