Cochin Shipyard Ltd mulls IPO

KOCHI: Cochin Shipyard Ltd. ( CSL), which is gearing up to float the country’s first indigenous aircraft carrier next month, is mulling an IPO to fund its expansion plan of around Rs 1500 crore.

CSL chairman and managing director K Subramaniam said the company hoped to offer 2.2 crore shares and raise around Rs 400 crore from the capital market. "But we are yet to submit a proposal and get the approvals," he said.

CSL plans to build a new large dry dock capable of docking offshore oil rigs, semi submersibles etc, develop an international ship repair facility at Kochi port and to take up offshore fabrication work for ONGC and other operators at a dedicated offshore location.

CSL has improved its performance for 2012-13 with turnover touching Rs 1554 crore compared with Rs 1405 crore in the previous year. Of this, the ship building income constituted Rs 1268 crore. The net profit was Rs 185 crore against Rs 172 crore in 2011-12. CSL was able to achieve good results despite a recession in the global shipping industry which is likely to continue for another two years, Subramaniam said.

Subramaniam said Union Defence Minister A K Antony will float India’s first indigenous aircraft carrier in Kochi on August 12. By June next year, the hull work will be over and the ship will be ready for trials. India is the fifth country in the world to design and build an air defence ship. CSL has been working with Indian Navy for over seven years in building the vessel.