Mumbai: The initial public offering of (IPO) state-owned ship builder Cochin Shipyard Ltd was subscribed 3.16 times on its second day on Wednesday, while that of security services company Security and Intelligence Services (India) Ltd (SIS) closed with an overall subscription of 6.91 times.

According to stock exchange data, institutional investors bid for 3.41 times the portion of Cochin Shipyard shares reserved for them, while those reserved for high net-worth individuals and retail investors saw 82% and four times subscriptions, respectively.

The company has set a price band of Rs424-432 per share for the initial share sale. The offer closes on Thursday.

The IPO is a fresh issue of 22.65 million shares, which at the upper end of the price band will fetch the company over Rs978 crore. There is also an offer for sale of 11.3 million shares. At the upper end of the price band, the government, which is selling 10% stake, will raise over Rs489 crore.

The funds will be used to fund two major projects and also to improve the existing facilities.

Meanwhile, exchange data showed that the portion of SIS shares reserved for institutions was subscribed 5.64 times, while those for high net-worth individuals and retail investors were subscribed 1.66 and 18.64 times, respectively.

SIS had priced its shares in a band of Rs805-815. The IPO is a fresh issue of 5.12 million shares, which at the upper end of the price band will fetch Rs360 crore to the company. SIS promoters Ravindra Kishore Sinha and Rituraj Kishore Sinha, and domestic private equity investor CX Partners are selling 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 had invested Rs500 crore in SIS in 2012.

The proceeds from the fresh issue will be used largely to repay high-cost debt and for investments in technology.

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.

According to data from primary market tracker Prime Database, 15 companies have raised Rs12,584 crore through IPOs in 2017. In 2016, the Indian primary market saw 26 companies raise Rs26,493.8 crore through IPOs, data shows.

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