Cochin Shipyard OFS: Government to Sell Up to 5.04% Stake at ₹1,400 Floor Price
The government will sell up to a 5.04% stake in Cochin Shipyard through an OFS. The ₹1,400 floor price is around 7% below the stock’s previous closing price of ₹1,504.75.
Cochin Shipyard OFS: The government will sell up to a 5.04% stake in Cochin Shipyard through an OFS at a floor price of ₹1,400. The offer opens for non-retail investors on 7 July and retail investors on 8 July.
Cochin Shipyard OFS: On 6 July, the government announced an Offer for Sale (OFS) in Cochin Shipyard, under which it plans to sell up to a 5.04% stake in the state-owned shipbuilding company.
The OFS includes a base offer of 2.52% of the company's paid-up equity share capital. If demand is strong, the government can sell another 2.52% stake through the green-shoe option.
The floor price for Cochin Shipyard has been fixed at ₹1,400 per share. The OFS will open for non-retail investors on 7 July, while retail investors can place their bids on 8 July.
Cochin Shipyard OFS at 7% Discount
Cochin Shipyard shares closed at ₹1,504.75 on Monday. Compared with this, the OFS floor price of ₹1,400 is at a discount of around 7%.
The government currently holds a 67.91% stake in Cochin Shipyard, including 178.67 million shares. At Monday's closing price, the value of this stake stood at around ₹26,885.55 crore.
If the entire 5.04% stake, including the green-shoe option, is sold, the government's holding in the company will fall from 67.91% to 62.87%. The Centre will continue to remain the majority shareholder and retain management control.
How Does the Green-Shoe Option Work?
The government is initially offering a 2.52% stake in Cochin Shipyard. However, if the OFS receives strong demand, it can sell an additional 2.52% stake.
This will take the total stake sale to 5.04%. The green-shoe option allows the government to sell more shares when demand exceeds the size of the base offer.
Government Targets ₹80,000 Crore in FY27
The Cochin Shipyard OFS is part of the government's FY27 disinvestment and asset monetisation programme.
In the Union Budget 2026-27, the Centre set a target of ₹80,000 crore from disinvestment and asset monetisation. So far, the government has raised ₹24,928.09 crore, or around 31.2% of the full-year target.
Of the total amount raised so far, ₹18,561.16 crore has come from disinvestment, while ₹6,366.93 crore has been raised through asset monetisation.
Government's Major Disinvestment Deals in FY27
The government has already raised ₹18,561.16 crore through several stake sales in FY27. These include:
|
Company |
Stake Sold |
Amount Raised |
|
Central Bank of India |
8.08% |
₹2,266.13 crore |
|
Coal India |
2% |
₹5,542.36 crore |
|
NHPC |
6.01% |
₹4,357.36 crore |
|
NLC India |
2.73% |
₹1,223.57 crore |
|
General Insurance Corporation of India |
5% |
₹3,090.47 crore |
|
Indian Railway Finance Corporation |
1.75% |
₹2,081.27 crore |