Cochin Shipyard plans IPO for expansion

Cochin Shipyard Ltd (CSL) is planning to come out with an initial public offer (IPO) to meet a part of its expenditure for expansion. This will be part of the government's divestment programme that also aims at getting state-run enterprises listed on the stock exchanges, secretary, shipping, PK Sinha said today.

He said the Cochin Shipyard has chalked out a major expansion plan in order to ensure growth. at a meeting with the shipping secretary, CSL chairman and managing director Commodore K Subramaniam had  outlined the business plan to build up capacity for sustaining the growth of ship-repair and shipbuilding in future.

The plan involves the setting up of a new 80m x 100m dry dock capable of docking rigs, semi submersibles etc, at the CSL estate.

It would also develop a ship-repair facility at Cochin Port Trust.

Besides shipbuilding and repairs, the company would take up offshore fabrication work for ONGC and other oil and
gas projects at a dedicated offshore location, he said.

The financial and technical feasibility report for the above projects with the revenue projections would be ready by December 2012. The approximate cost for the expansion is likely to be Rs1,500 crore (subject to confirmation at the feasibility study stage).

CSL hopes to raise a part of this requirement by way of IPO at the time of the disinvestment by Government of India.

Members of the committee also discussed in detail the functioning of the Mini Ratna company, which has been consistently paying dividend over the last three years.