Shares of Cochin Shipyard listed at about 2 percent premium over the issue price of Rs 432 in its introduction trade on Friday.
The stock appeared at Rs 435, up 0.69 percent from its issue price on the BSE. On NSE, shares of the company listed at Rs 440.15, a pick up of 1.88 percent from the issue price. However, the stock later zoomed 20.8 percent to hit Rs 522 on the BSE. At 11:44 am, the stock was at Rs 517, up about 19 percent from the issue price.
Cochin Shipyard Ltd had settled a price band of Rs 424-432 for every equity share of Rs 10 face value for its IPO. The Shipyard was set to get Rs 978.74 crore through the crisp issue of shares.
The company’s record book remained at over Rs 3,300 crore. The small Ratna firm has offered for three noteworthy tenders of the Indian Navy. Specialists trust the governments’ ‘Make in India’ activity and concentrate on safeguard spends may open up open doors for the company.
The Union government is likewise offering 10% of its stake through an offer available to be purchased of around 11.3 million shares. The effective IPO will imply that the government will bring Rs489 crore through the share deal.
Executive of the general population segment shipyard in India, Madhu S Nair stated, the company will be contributing Rs 3,100 crore throughout the following five years for limit development in both ship building and also on the repairs side. Cochin Shipyard is constructing another greater dry-dock office which would make the firm a solid contender for constructing the nation’s next indigenous aircraft carrier.
The funds from the new issue of shares will be utilised to fund two noteworthy projects and furthermore to enhance the shipbuilder’s current amenities.