CCEA approves initial public offer of Cochin Shipyard
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18 Nov 2015
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The cabinet committee on economic affairs, chaired by the Prime Minister Narendra Modi, on Wednesday gave its approval for issue of an initial public offer (IPO) of Cochin Shipyard Limited (CSL). “The approval is for issue of an IPO to the public consisting of 3,39,84,000 equity shares of Rs 10 each amounting to an equity capital of Rs 33.984 crore of CSL consisting of fresh issue of 2,26,56,000 equity shares and sale of Government of India's stake in CSL worth 1,13,28,000 equity shares of Rs 10, through a public offering in the domestic market according to Securities and Exchange Board of India (SEBI) rules and regulations,” CCEA said in a statement. The company intends to use fund proceed to partially finance expansion in short and medium term and to take up underwater repairs to rigs and semi submersibles. The disinvestment of the government of India's stake in CSL is in line with the government's decision on the issue. It will raise resources for the government due to the sound financial condition of CSL, the committee said. There would be no financial outgo from the government on account of the issue of shares. Instead, the Government would earn revenue due to sale of its shares to the public, it added. |
| Source: Dion Global Type: IPO Related |
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