Mumbai: Shares of Cochin Shipyard Ltd on Friday surged over 20% on debut on the bourses on Friday, after the state-run shipbuilder’s initial public offer (IPO) was subscribed more than 76 times last week.

Cochin Shipyard shares opened 0.7% higher on the BSE at Rs435 apiece compared to the issue price of Rs432 , which was the upper end of the price band of Rs424-432 per share.

The shares closed 20% higher at Rs522 on BSE. Earlier in the day, the shares touched a high of Rs522 and a low of Rs435, respectively.

Cochin Shipyard’s IPO had witnessed subscription of 76.19 times, according to data from the National Stock Exchange.

The IPO, a fresh issue of 22.65 million shares, will fetch the company Rs978 crore at the upper end of the price band.

The Union government is also selling 10% of its stake through an offer for sale of around 11.3 million shares. The successful IPO will mean that the government will fetch Rs489 crore through the share sale.

The funds from the fresh issue of shares will be used to fund two major projects and also to improve the shipbuilder’s existing facilities.

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