Cochin Shipyard and Security and Intelligence Services to launch IPOs next week
Cochin Shipyard has priced its shares at Rs424-432 apiece for the IPO that closes on 3 August, while SIS India has set a price band of Rs805-815 per share for the share sale that closes on 2 August
Mumbai: State-run shipbuilder Cochin Shipyard Ltd on Tuesday said that it will launch its over Rs1,468 crore initial public offering on 1 August.
The company has priced its shares at Rs424-432 apiece for the IPO that closes on 3 August.
The IPO will see a fresh issue of 22.65 million shares, fetching the company over Rs978 crore at the upper end of the price band. The issue will also see an offer for sale of 11.3 million shares. At the upper end of the price band, the government will raise over Rs489 crore from the stake sale. The government is selling a 10% stake.
“Out of the total proceeds from the IPO, two-thirds will be used for expansion. We also have free cash reserves of Rs1,648 crore. The aggregate funds from both the sources will be used to fund two major projects, which will require Rs2,800 crore, improve present facilities, which will require Rs300 crore, and maintain sufficient free cash reserves for working capital requirements," said Madhu S. Nair, chairman and managing director, Cochin Shipyard.
Also on Tuesday, Security and Intelligence Services (India) Ltd (SIS), a company in the business of providing security services and facility management, said that it will launch its over Rs780 crore IPO on 31 July.
SIS has set a price band of Rs805-815 per share for the share sale that closes on 2 August.
The IPO will see a fresh issue of 5.12 million shares, fetching the company over Rs360 crore at the upper end of the price band. SIS promoters Ravindra Kishore Sinha and Rituraj Kishore Sinha, and domestic private equity investor CX Partners will sell part of their stake in the IPO, through an offer for sale.
At the upper end of the price band, these shareholders are collectively selling shares worth Rs417 crore. CX Partners invested Rs500 crore in SIS in 2012.
The proceeds from the fresh issue will be used largely to repay high-cost debt and to improve technology.
“We will focus on organic growth which is a core part of our strategy. Eighty percent of the funds from the IPO will be used to repay high-cost debt, and the remaining will be used to recapitalize our balance sheet and as investment in technology as service quality is fundamental to our growth," said Rituraj Sinha, group managing director, SIS.
SIS, established in 1974, offers security services, electronic security systems, consulting, facility management, cash services which include transfer of cash and valuables, ATM replenishment, and recruitment and training services.
In 2008, SIS acquired Australia’s largest security company Chubb Security, and in August 2011, the company entered into a joint venture with Terminix, to perform pest and termite control in India.
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