The Centre will be selling up to 5.04% stake in Cochin Shipyard Ltd. through an OFS issue, the Department of Investment and Public Asset Management announced on Monday.
The floor price of OFS set at Rs 1,400 per share. The issue consists of a base offer wherein the government will offload 2.52% stake.
Further, it may sell an additional 2.52% stake through a green-shoe option, DIPAM Secretary said. OFS opens for non-retail investors on 7th July 2026. Retail investors get to bid on 8th July 2026.
The announcement comes after finance ministry sources denied reports that the government was preparing an offer for sale in defence PSU.
Earlier reports had indicated that the transaction could raise more than Rs 16,000 crore, depending on the size of the issue and the pricing.
As per the latest shareholding pattern, the President of India, the promoter of Cochin Shipyard, held a 67.91% stake in the company. Life Insurance Corporation of India owned 87.74 lakh shares, representing a 3.34% stake.
An offer for sale is a route commonly used by the government to reduce its holdings in listed public sector enterprises and increase public shareholding.
ALSO READ: Government Denies Reports Of Cochin Shipyard OFS, Says No Stake Sale Planned At Present
Disinvestment Receipts Support Fiscal Position
Stake sales in Coal India, NHPC, NLC India, Central Bank of India and General Insurance Corporation of India have helped the Centre mobilise close to Rs 14,000 crore through disinvestment during the quarter so far. The total is expected to rise further after pending proceeds are accounted for.
The government's disinvestment receipts are set to cross Rs 15,000 crore in the April-June quarter, strengthening non-tax capital receipts and supporting its FY27 fiscal deficit target.
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The collections highlight the role of non-tax capital receipts as the government manages spending commitments. Higher proceeds from stake sales and asset monetisation could help ease pressure on the fiscal position, particularly as subsidy requirements for fertilisers and petroleum products are expected to rise.
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