Cochin Shipyard plans public issue for funding expansion (Live mint.com 21th Feb 2108)The Union government-owned Cochin Shipyard Ltd plans an initial public offering (IPO) to fund an expansion plan even as the country scales up its shipbuilding capabilities to tap into a global boom in the business.
The plan involves building a new dry dock, which typically costs Rs800-1,000 crore.
A dry dock is a narrow basin that can be flooded to allow a ship to be floated in, then drained to allow that ship to come to rest on a dry platform. Dry docks are used for the construction, maintenance and repair of ships.
“We have submitted a proposal to the shipping ministry for constructing a new dry dock at the yard which could be funded through a sale of new shares to the public,” said a company executive, who did not want to be named because he is not authorized to speak to the media.
If and when the ministry clears the proposal, Cochin Shipyard will become the first state-owned shipbuilding yard to be listed on the bourses. The finer details of the share sale will be worked out after receiving government nod, the executive added.
The Centre also owns Hindustan Shipyard Ltd, Mazagon Dock Ltd, Goa Shipyard Ltd, Garden Reach Shipbuilders and Engineers Ltd, Hooghly Dock and Port Engineers Ltd and Central Inland Water Transport Corp. Ltd. Another shipyard, Alcock Ashdown (Gujarat) Ltd, is fully owned by the Gujarat government.
India has 23 shipyards, but only four of them are listed: ABG Shipyard Ltd, Bharati Shipyard Ltd, Western India Shipyard Ltd and India’s biggest engineering and construction firm Larsen and Toubro Ltd, which also builds ships.
India’s newest private sector shipbuilder, Pipavav Shipyard Ltd, promoted by SKIL Infrastructure Ltd, has filed a draft prospectus with the Securities and Exchange Board of India, seeking clearance for an IPO to raise around Rs800 crore.
The country’s shipyards can currently build ships with a combined cargo carrying capacity of 2.8milliontonnes (mt). They are currently building about 245 ships worth more than Rs20,000 crore, accounting for just 0.4% of the global market share.
In comparison, China has 326 yards with a capacity to build ships with a cargo carrying capacity of 12.2mt and South Korea has the capacity to build ships with 11.5mt capacity. More
The plan involves building a new dry dock, which typically costs Rs800-1,000 crore.
A dry dock is a narrow basin that can be flooded to allow a ship to be floated in, then drained to allow that ship to come to rest on a dry platform. Dry docks are used for the construction, maintenance and repair of ships.
“We have submitted a proposal to the shipping ministry for constructing a new dry dock at the yard which could be funded through a sale of new shares to the public,” said a company executive, who did not want to be named because he is not authorized to speak to the media.
If and when the ministry clears the proposal, Cochin Shipyard will become the first state-owned shipbuilding yard to be listed on the bourses. The finer details of the share sale will be worked out after receiving government nod, the executive added.
The Centre also owns Hindustan Shipyard Ltd, Mazagon Dock Ltd, Goa Shipyard Ltd, Garden Reach Shipbuilders and Engineers Ltd, Hooghly Dock and Port Engineers Ltd and Central Inland Water Transport Corp. Ltd. Another shipyard, Alcock Ashdown (Gujarat) Ltd, is fully owned by the Gujarat government.
India has 23 shipyards, but only four of them are listed: ABG Shipyard Ltd, Bharati Shipyard Ltd, Western India Shipyard Ltd and India’s biggest engineering and construction firm Larsen and Toubro Ltd, which also builds ships.
India’s newest private sector shipbuilder, Pipavav Shipyard Ltd, promoted by SKIL Infrastructure Ltd, has filed a draft prospectus with the Securities and Exchange Board of India, seeking clearance for an IPO to raise around Rs800 crore.
The country’s shipyards can currently build ships with a combined cargo carrying capacity of 2.8milliontonnes (mt). They are currently building about 245 ships worth more than Rs20,000 crore, accounting for just 0.4% of the global market share.
In comparison, China has 326 yards with a capacity to build ships with a cargo carrying capacity of 12.2mt and South Korea has the capacity to build ships with 11.5mt capacity. More
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