The Centre has revived its plans for listing State-owned Cochin Shipyard on the bourses.
On Monday, the Department of Investment and Public Asset Management (DIPAM) invited bids from merchant bankers for managing an IPO in the public sector undertaking (PSU) that will involve sale of 10 per cent sale of government stake as well as fresh issue of shares.
“Cochin Shipyard will be going for an IPO in the domestic market consisting of 3.39 crore equity shares, including 2.26 crore fresh shares and sale by Government of India of 10 per cent of its stake in the company comprising of 1.13 crore shares,” it said.
The sale of the fresh equity shares is expected to help “fund the PSU’s future growth plans,” it said. A part of the public offering may be reserved for employees of Cochin Shipyard. Eligible employees and retail investors may be offered shares at a discount of 5 per cent on the issue price.
DIPAM has sought proposals from merchant bankers by June 6.
This is the second time the government has invited bids from merchant bankers for the IPO.
The Union Cabinet had in November last year approved the proposal for listing Cochin Shipyard and the government had issued a Request for Proposal in January this year.
Set up in 1972 as a PSU under the Ministry of Shipping, CSL has an authorised and paid-up share capital of ₹250 crore and ₹113.28 crore, respectively. Its net worth was ₹1,838 crore as on March 31, 2016.