Cochin Shipyard gains after incorporating joint venture company

Cochin Shipyard rose 1.5% to Rs 577.10 at 09:51 IST on BSE after the company formed a joint venture with Hooghly Dock & Port Engineers.

The announcement was made after market hours yesterday, 23 October 2017.

Meanwhile, the S&P BSE Sensex was up 103.38 points or 0.32% at 32,610.10. The S&P BSE Mid-Cap index was up 38.80 points or 0.24% at 16,186.77.

On the BSE, 39,000 shares were traded in the counter so far, compared with average daily volumes of 2.85 lakh shares in the past one quarter. The stock had hit a high of Rs 581 and a low of Rs 570.50 so far during the day. The stock hit a record high of Rs 592.20 on 11 October 2017. The stock hit a record low of Rs 435 on 11 August 2017.

The mid-cap company has equity capital of Rs 135.94 crore. Face value per share is Rs 10.

Cochin Shipyard said that a joint venture company has been incorporated yesterday, 23 October 2017 in the name of Hooghly Cochin Shipyard. Cochin Shipyard and Hooghly Dock & Port Engineers will have 76% and 24% stake in the company respectively.

It may be recalled that the Ministry of Shipping, Government of India had on 29 March 2017 approved formation of joint venture company between Cochin Shipyard and Hooghly Dock & Port Engineers for upgradation and modernization of shipbuilding infrastructure at the two shipyard sites of Salkia and Nazirgunge in Kolkata.

Shares of Cochin Shipyard had debuted at Rs 435 on BSE, a premium of 0.69% over its initial public offer (IPO) price of Rs 432 per share on 11 August 2017. The stock had settled at Rs 522, a premium of 20.83% on its debut.

The initial public offer (IPO) of Cochin Shipyard had received a stellar response from investors. It was oversubscribed 76.19 times. The IPO price band was fixed at Rs 424-432 per share.

Cochin Shipyard's net profit rose 12.58% to Rs 91.16 crore on 34.63% growth in net sales to Rs 556.25 crore in Q1 June 2017 over Q1 June 2016.

Cochin Shipyard is one of the leading shipbuilding and shiprepairing companies in India.

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