State-run Cochin Shipyard made its debut on the stock market today, zooming up over 20.8% as of this writing to Rs. 522 on the BSE.
Post the IPO, the government's stake in the company has come down by 10 percentage points to 75%. The IPO, priced in the band of Rs. 424 - 432, was highly oversubscribed even by the enthusiastic standards of this year, subscribed 76.2 times, with the retail portion subscribed over eight times. Sixteen IPOs so far this year were subscribed an average of over 60 times.
The shipbuilder, which is the only profitable firm to be listed in this space, says it will use the money raised for working capital as well as to set up a new ship manufacturing facility at a time traffic at ports is booming.
Cochin Shipyard's public issue has been oversubscribed by over 71 times on its final day, receiving bids for 242.13 crore equity shares against the IPO size of 3.39 crore shares, as per data on the exchange.
During the last decade (2007-2017), the company said that its sales and profits grew at a CAGR of 11.1 percent and 19 percent. At the upper end of the Cochin Shipyard IPO price band, the company would hit a market capitalisation of Rs 5,845 crore.
Excluding cash (Rs 1,600 crore and Rs 979 crore from IPO proceeds) market capitalisation would come to Rs 3,250 crore, about 8x the company's EBIDTA in FY17.