The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has given its approval for issue of an Initial Public Offer (IPO) of Cochin Shipyard (CSL).

The approval is for issue of an IPO to the public consisting of 33.99 million equity shares of Rs 10 a share amounting to an equity capital of Rs 339.90 million.

CSL will issue fresh 22.66 million equity shares and the government will divest 11.33 million shares in the company.

The disinvestment of the government's stake in CSL is in line with the decision on the issue. The company will raise resources for the government due to the sound financial condition of CSL.

Also, there would be no financial outgo from the Government on account of the issue of shares. Instead, the government would earn revenue due to sale of its shares to the public.