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.