Cochin Shipyard , a CPSE is coming out with IPO. The company has filed IPO documents with SEBI.
IPO: PUBLIC ISSUE OF 33,984,000 EQUITY SHARES OF FACE VALUE OF Rs 10 EACH FOR CASH AT A PRICE yet to be fixed PER EQUITY SHARE CONSISTING 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 AGGREGATING .
About the Sector in which the Company operates:
Global seaborne trade increased by 2.1% to 10,048 million tonnes in 2015. Dry bulk cargo comprised the largest share at 54%. Developing economies( which includes India) accounted for the largest share of seaborne trade, in volume terms, at an estimated 60%. Developing countries have become global manufacturing centres with growing demand for capital and consumer goods, and are no longer viewed as only suppliers of raw materials.
In terms of a regional comparison, Asia was the largest loading and unloading region, followed by the Americas, Europe, Oceania and Africa. As of January 2016, the global commercial fleet stood at 90,917 vessels, totalling 1.8 billion DWT. Dry bulk carriers comprised the largest share at 43.1% followed by the oil tanker segment with a share of approximately 27.9%.
The respective shares of oil tankers and general cargo vessels in the global fleet have declined over the years, while those of dry bulk carriers and container ships have increased.
As of January 2016, the dry bulk carriers, with a 43% contribution in terms of gross registered tonnage (GRT), was the largest vessel category in the global fleet. The share of oil tankers, which made up for 50% of the global fleet in 1980, has declined to 28% in 2016. Over this period, the share of container vessels’ increased from 2% to 14%, following China’s manufacturing-led growth as well as the shipping industry’s strategy to reduce costs using economies of scale
The Indian commercial fleet saw an addition of 42 vessels with approximately 0.2 million GRT in 2015. In 2015, India’s total fleet strength was 1,246 vessels with a GRT of 10.51 million. The majority of the Indian fleet is deployed for costal trade, with approximately 70% of the registered vessels used for coastal trade, while the remaining 373 vessels are engaged in overseas trade. However, in tonnage terms, the fleet deployed for coastal trade is approximately 1.5 million GRT, while that for overseas trade is approximately 9 million GRT
About the Company:
CS is the largest public sector shipyard in India in terms of dock capacity, as of March 31, 2015. It caters to clients engaged in the defence sector and clients engaged in the commercial sector worldwide. In addition to shipbuilding and ship repair, it also offers marine engineering training.
As of January 31, 2017, it has two docks .Dock number one is primarily used for ship repair and Dock number two, is primarily used for shipbuilding . Its Ship Repair Dock is one of the largest in India and enables it to accommodate vessels with a maximum capacity of 125,000 DWT .Its Shipbuilding Dock can accommodate vessels with a maximum capacity of 110,000 DWT
CS in the process of constructing a new dock, a ‘stepped’ dry dock (“Dry Dock”). This stepped dock will enable longer vessels to fill the length of the dock and wider, shorter vessels and rigs to be built or repaired at the wider part. The Company is also in the process of setting up an International Ship Repair Facility (“ISRF”), which includes setting up a shiplift and transfer
CS is currently building India’s first Indigenous Aircraft Carrier for the Indian Navy.
It has recently delivered a large deck cargo cum launch barge to the National Petroleum Construction Company, Abu Dhabi and the last Fast petrol vessel (in a series of 20) to the Indian Coast Guard.
It has commenced operations in 1975 and have over four decades of experience in shipbuilding.
Its Marine Engineering Training Institute located at Kochi began in 1993.
The Company has posted profits continuously in the last five Fiscals. Its total revenues and PAT has increased from Rs 14,737.01 million and Rs 1,553.28 million respectively, in Fiscal 2012 to Rs 20,992.84 million and Rs 2,858.29 million, respectively, in Fiscal 2016 at a CAGR of 9.25% and 16.47%, respectively.
For the half year ended September 30, 2016, its total revenues and PAT were Rs.10,274.61 million and Rs.1,845.24 million, respectively
Additionally, it has continuously delivered positive RoE margins over the last four Fiscals.
CS paid dividends to its shareholders at rates of 15%, 15%, 15%, 15% and 76.50% in Fiscals 2012, 2013, 2014, 2015 and 2016. It has strong liquidity position in terms of total cash of Rs 21,191.54 million as of January 31, 2017.