SEBI has given green signal to Cochin Shipyard IPO during the week 14-21 April 2017.
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%. In 2015, India’s total fleet strength was 1,246 vessels with a GRT of 10.51 million.
(Detailed note on Shipyard sector is given in Page-Bottom-Box)
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 transfer( Detailed information about the Company is given in Page-Bottom-Box)
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.