Mumbai: Government-run Cochin Shipyard Ltd (CSL) has applied for Cabinet approval of an initial public offering (IPO) to raise Rs 800 crore to fund its expansion and for capital restructuring, reports the Business Standard. Part of the IPO proceeds would be used to create additional facilities to construct offshore vessels and tugs, which will ensure better margins for the yard.
A state official is reported as saying that if the IPO proposal receives the Cabinet clearance, CSL will be the first state-owned shipyard to be listed. The yard, which recently gained increased financial autonomy by achieving the 'mini-ratna' status from the government, currently builds vessels using two dry docks-- the first a with 110,000 tonnes capacity and the other of 125,000 tonne capacity. The shipyard's current order book stands at more than Rs2,000 crore ($458.8m). [18/08/08]
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