Cochin Shipyard IPO today even as shipbuilders paddle grim biz scenario

Realignments within the domestic shipbuilding industry have not improved business prospects for key players over the past four years. While state-owned Cochin Shipyard is coming up with its initial public offer (IPO) today (July 25), efforts made by private shipbuilders to revive their businesses have largely been in vain. "The government is trying to boost the domestic shipbuilding sector for quite some time now. It is due to this IPO that the sector has come into some limelight," Hitesh Avachat, deputy manager and group head (Shipping) at CARE Ratings, said. "Overall, otherwise, business prospects for the shipbuilding industry continue to remain dull in the short to medium term," he added. Financial Astrology Tips

Cochin Shipyard, the country’s largest public sector shipyard, will see a 10 per cent disinvestment by the government and a 20 per cent fresh issue of shares. After this IPO, the government will hold a 75 per cent share in the shipbuilder while the balance 25 per cent shares will be held by the public. However, domestic private shipbuilders continue to grapple with the grim business climate despite restructuring. For instance, debt-laden Pipavav Defence and Offshore Engineering, which was acquired by Anil Ambani-led Reliance Infrastructure in 2015, has been witnessing operational losses for the past two years. Analysts, however, are of the view that buyouts in the sector are largely distress buys and do not signal any positive business outlook. Astrology and Numerology Trading Tips