The government on Monday denied reports that it was preparing an offer for sale in Cochin Shipyard Ltd, with a Finance Ministry official saying no stake sale in the state-run shipbuilder is planned at present.
The clarification came after media reports, citing sources, said the Centre was considering an offer for sale (OFS) of a 6% to 8% stake in Cochin Shipyard as part of its disinvestment programme. The reports said the transaction could raise more than Rs 16,000 crore, depending on the size of the issue and the pricing.
A Finance Ministry official said, "No stake sale is planned in Cochin Shipyard at present."
Reports Had Pointed To Potential Stake Dilution
According to the reports, the government was exploring a sale of around 6% to 8% of its holding in the defence public sector undertaking. The floor price for the OFS was expected to be set at a discount of about 6% to 8% to the prevailing market price to encourage investor participation.
The reports had also said the final issue size and floor price had not been decided, while Cochin Shipyard had not made any official announcement regarding a proposed stake sale.
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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.
Sources cited in the reports had indicated that the timing of any such transaction was yet to be finalised and could depend on market conditions over the next three to six months.
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.
Disinvestment Receipts Support Fiscal Position
The denial also comes against the backdrop of higher disinvestment collections in the first quarter of FY27.
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.
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.
Asset Monetisation Pipeline Remains In Focus
The government's FY27 asset monetisation programme targets receipts of Rs 80,000 crore and includes the strategic disinvestment of IDBI Bank, alongside minority stake sales in select public sector enterprises.
Further dilution in certain state-owned companies, including Life Insurance Corporation of India, remains a medium-term option.
Official data showed the Centre had mobilised Rs 21,732.23 crore through non-tax capital receipts in FY27 so far. Disinvestment receipts contributed Rs 13,389.42 crore, while asset monetisation generated Rs 6,366.93 crore. Dividend receipts stood at Rs 1,975.88 crore.
Economists said such receipts become more significant during periods of elevated expenditure because they provide non-debt resources, reduce dependence on market borrowings and support the government's fiscal consolidation plans.
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