KOCHI: Cochin Shipyard Ltd (CSL), India’s largest public sector shipyard, is planning to raise about Rs 1,400-1,500 crore through an initial public offering (IPO) and has filed papers with the market regulator. On completion of a successful IPO, CSL will become the first among the five state-owned shipbuilding companies to be publicly listed. The company has filed the Draft Red Herring Prospectus (DRHP) with SEBI on Friday. The IPO comprises 33,984,000 equity shares consisting of 22,656,000 fresh shares and an offer for selling 11,328,000 shares by the President of India.
CSL intends to use the net proceeds from the fresh issue for setting up of a new dry dock on its existing premises, an international ship repair facility at the Cochin Port Trust and for general corporate purposes. The equity shares will be of a face value of Rs 10, but the price band will be decided in consultation with the book running lead managers.In November 2015, the Cabinet Committee on Economic Affairs has approved the CSL share sale.