Cochin Shipyard Limited – Subscribed over 76 times

The maiden IPO from Cochin Shipyard Limited was a runaway success getting oversubscribed 76.19 times. The IPO size was 1,486 crs and garnered subscription of 1.11 lakh crs. This makes it the second highest subscription amount raised after Coal India Limited. The IPO from Coal India Limited was Rs 15,000 crs and compared to Cochin Shipyard was 1 times in size. Considering the base the subscription for Cochin Shipyard could be considered to be a block buster.

The full details of the subscription are given below.

Cochin Shipyard Subscription

Bucket Size Shares applied for Times oversubscribed
QIB 16580000 1053102210 63.52
HNI 4974000 1436847000 288.87
Retail 11606000 98737050 8.51
Employee 824000 393210 0.48
Total 33984000 2589079470 76.19

The issue received 20.75 lakh applications and created a record in terms of highest number of applications ever received so far. In the process it beat the previous best of HUDCO which had received 20.13 lakh applications. Incidentally Hudco was also a government of India offering. Looking at the participation of retail in the primary market, it’s time for the regulator to look at the bucket sizes and reallocate the same considering the retail interest and the fact that retail is mass participation and consist of just one lot.

All told excellent response for the issue which was very well priced and kudos to the ministry for pricing the share at a valuation which leaves something on the table for all. Wonder when the same wisdom will dawn on the private companies and their promoters.

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