Cochin Shipyard Ltd bags Rs 5,400 crore contract from Navy

KOCHI:  The Cochin Shipyard Ltd (CSL), the country's leading shipbuilder, has won a contract from the Navy to build eight shallow water anti-submarine vessels at an estimated Rs 5,400 crore. Officers said CSL was the lowest bidder for the tender floated by the Ministry of Defence.

They said the first vessel will be delivered in 42 months, while the remaining vessels will be delivered at the rate of two vessels every year. In addition to the order, CSL is also constructing India's first indigenous aircraft carrier for the Navy.The order to build eight shallow water anti-submarine vessels is the first major contract for CSL after its highly successful initial public offering (IPO) in August.

The public sector shipbuilder raised Rs 1,468 crore from the IPO which saw huge investor demand and the public issue was subscribed 76.2 times. The IPO proceeds were aimed at setting up a dry dock and an international ship repair facility. CSL's share price has gained 36 per cent (Rs151/share) since its listing from the offer price of Rs 411 apiece to Rs 562 apiece. For the quarter ended June 30, CSL reported a total revenue of Rs 556.25 crore while its net profit stood at Rs 91.16 crore.