Cochin Shipyard, which recently received Cabinet clearance for an initial public offering, is planning to raise Rs.600-700 crore to support the company´s Rs.2,500 crore investment in the ship repair facility and a new dry dock.
The government has approved the sale of a 10 per cent stake in Cochin Shipyard to restart its disinvestment programme that had been put on hold in a weak market. The stake sale announcement has come from the Cabinet but the intimation has not yet reached Cochin Shipyard. It would take a while to receive the final notification, said a company executive.
K Subramaniam, Chairman and Managing Director, Cochin Shipyard, said the company had initiated two key projects, investments in the ship repair facility and a new dry dock. ´Our rough estimate is Rs,500 crore for the two projects and the proceeds from the IPO will be used for these,´ he said. The projects would be taken up over the next four years. He added Cochin Shipyard conducted Rs.300 crore worth of ship repairs and this would be increased to Rs.800 crore in the next 15 years with new terminals.