Cochin Shipyard IPO Opens for Subscription at Rs. 424 to Rs. 432

By | August 1, 2017

Cochin Shipyard IPO Opens for Subscription at Rs. 424 to Rs. 432 – India’s largest state-owned shipyard is coming to stock markets through an initial public offer (IPO). The IPO of Cochin Shipyard opens on Tuesday (01 August 2017). Cochin Shipyard is selling 3.4 crore shares to the public. The issue of Cochin Shipyard is priced at Rs. 424 to Rs. 432. Retail investors and employees will get Rs. 21 discount. Through this IPO, Cochin Shipyard will collect around Rs. 979 crores in fresh capital. The company is going to raise its paid up equity capital to Rs. 136 crore. The company will end the subscription offer on Thursday (03 August 2017). Investors who want to apply for this IPO should check the given information to get more details about the Cochin Shipyard IPO. It will be good to read all details.

Cochin Shipyard IPO Opens for Subscription

Some facts about the Cochin Shipyard IPO:

  • Cochin Shipyard is a state-owned shipyard company.
  • The government has given Maharatna status to Cochin Shipyard.
  • It provides shipbuilding services along with ship repair services.
  • The CS IPO is priced in the range of Rs. 424 to Rs. 432.
  • The initial public offer will open on on Tuesday (01 August 2017) and will close on Thursday (03 August 2017).
  • Investors can make application in lot sizes of 30 shares.
  • The government of India will offload 25% stake via 1.13 crore shares.
  •  The government’s stake will be 75% from 100% after this IPO.
  • It intends to raise Rs. 1,440.92 crore at the lower price band and Rs. 1,468.11 crore at the higher price band.
  • Cochin Shipyard is also raising fresh capital worth Rs. 979 crore.
  • 74% of its revenue comes from its shipbuilding services.
  • 26% of its revenue comes from ship repair services.
  • The ship repair services of Cochin Shipyard has grown at a CAGR of 17.5% at over FY2013-17.
  • The total revenue increased from 17% to 26% for FY13 to FY17 for its ship repair business.
  • It has a strong order book of Rs. 3,078 crore, which is 1.5 times its FY2017 revenue.
  • The 80% of order comes from defence sector and 20% from non defence sector.
  • Total debt of the company stands at around Rs. 228 crores.
  • It has cash & equivalent of around Rs. 2,000 crores as of FY2017.
  • The total revenue was Rs. 2,059 crore in FY17.
  • The total net profit was Rs. 312 crore in FY17.
  • Its revenue has grown at a CAGR of 11% over FY2007-FY2017.
  • Its net profit has grown at a CAGR of 19% over FY2007-FY2017.
  • The operating margin of Cochin Shipyard was 7.9% in FY2007.
  • The operating margin now stands at 18.4% in FY2017.
  • At the upper price band of Rs. 432, The shares of Cochin Shipyard are valued at 15.7 times its FY17 earnings per share of Rs. 28.

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