The Initial Public Offering (IPO) of the state owned Cochin Shipyard has received a decent response from investors on Thursday, the last day for subscription.
The reserved portion of qualified institutional investors oversubscribed 5.5 times, followed by non-institutional investors 3 times and retail 5 times.
State-run Cochin Shipyard targets to raise up to Rs 1,468 crore through its share sale offer. The price band for public issue of 3.3984 crore equity shares is fixed at Rs 424-432 per share.
Cochin Shipyard is India's biggest public-run shipyard company and its issue opened on August 1, 2017. For the year ended March 2017, the company reported revenue of Rs. 2208.5 crores. Profit figure for the year stood at Rs.312.1 for the year ended March 2017. Basic EPS for the year ending March 2017 is Rs. 27.56 whereas last three years weighted EPS comes to be Rs. 23.38.
Many brokerages had suggested a buy rating on the stock, while some had a neutral rating to buy the stock. The shares may list at a premium considering the buoyant nature of Indian stocks at the moment.