Cochin Shipyard OFS Fully Subscribed By Non-Retail Investors; Floor Price Set At Rs 1,400

The government's offer for sale in Cochin Shipyard Ltd. was fully subscribed, including the green-shoe option, as of 2:40 p.m. on Tuesday. The Centre is looking to sell up to a 5.04% stake in the state-run shipbuilder through the OFS. The issue comprises a base offer of 2.52%, with an option to sell an additional 2.52% through the green-shoe route.

The floor price has been fixed at Rs 1,400 per share. The OFS opened for non-retail investors on July 7, while retail investors will be able to place bids on July 8.

The stake sale comes after the government announced the transaction on Monday. As per the latest shareholding pattern, the President of India held a 67.91% stake in Cochin Shipyard. Life Insurance Corporation of India held a 3.34% stake, equivalent to 87.74 lakh shares.

The OFS also adds to the Centre's disinvestment drive in the current financial year. Stake sales in Coal India, NHPC, NLC India, Central Bank of India and General Insurance Corporation of India have helped the government mobilise close to Rs 14,000 crore through disinvestment so far.

The government's disinvestment receipts are expected to cross Rs 15,000 crore as pending proceeds are accounted for, strengthening non-tax capital receipts and supporting the Centre's FY27 fiscal deficit target.

Higher proceeds from stake sales and asset monetisation could provide additional fiscal support at a time when subsidy requirements for fertilisers and petroleum products are expected to rise.

An offer for sale is commonly used by the government to pare its holdings in listed public sector companies while increasing public shareholding.

ALSO READ: Cochin Shipyard OFS: Govt To Sell Up To 5.04% Stake In Defence PSU; Floor Price At Rs 1,400/Share

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