Cochin Shipyard shares fall as government OFS for up to 5.04% stake opens for retail investors

Shares of Cochin Shipyard Ltd. fell over 3% as the Centre's Offer for Sale (OFS) opens for retail investors on Wednesday.

Shares of state-owned Cochin Shipyard declined 2% to their day's high of Rs 1,418 on the BSE on Wednesday as the Centre's Offer for Sale (OFS) opens for retail investors, following strong demand in the non-retail portion on Tuesday.The government is looking to divest up to a 5.04% stake in the state-run shipbuilder through the OFS. The sale involves more than 1.32 crore shares. As of the March 2026 quarter, the Centre held a 67.91% stake in Cochin Shipyard, while retail investors owned 19.66% and high-net-worth individuals held 0.73%.The non-retail portion of the OFS was subscribed 3.52x on Tuesday, prompting the government to exercise the entire greenshoe option to sell an additional 2.52% stake in the company. The Centre had initially offered to sell a 2.52% stake, equivalent to 66.29 lakh shares.Also read:Cochin Shipyard OFS gets 3.5x bids; govt exercises greenshoeThe indicative bid price stood at Rs 1,401.85 per share, compared with the floor price of Rs 1,400. At the floor price, the sale of the full 5.04% stake is expected to fetch around Rs 1,800 crore for the government.The OFS is part of the Centre's ongoing disinvestment programme. Since May 21, the government has raised more than Rs 20,000 crore through a series of OFSs. In June, it conducted stake sales in companies including Coal India, NLC India, NHPC, IRFC, GIC**,** and others.The government has exercised the greenshoe option in every OFS it has launched so far this year.How to apply?Retail investors can submit bids through the OFS section available on their trading platform or broker's application. Before placing bids, investors should check details such as the floor price and bid quantity. The bid price must be equal to or higher than the floor price of Rs 1,400 per share.Investors also need to maintain sufficient funds in their trading accounts, as the bid amount will remain blocked until the allotment process is completed. Shares will be credited to the Demat account of successful applicants on the settlement date, while unsuccessful bidders will have the blocked amount released.Shipyard shareholding patternThe government owned nearly a 68% stake in Cochin Shipyard as of March 31, 2026, according to the company's shareholding pattern filed with the NSE. Meanwhile, around 9.62 lakh retail shareholders held approximately a 20% stake in the company.Life Insurance Corporation of India (LIC) owned more than a 3% stake, while 24 mutual funds owned slightly more than a 2% stake in the company. Foreign investors, meanwhile, held around a 3% stake in the company's total equity.Cochin Shipyard share priceCochin Shipyard is one of India's leading public sector shipbuilding and ship repair companies. The company's shares have delivered over 400% returns in the past three years and nearly 700% returns in the past five years.Recently, the stock has come under pressure. The PSU's shares have dropped more than 29% over the past year and over 12% in 2026 so far. The company has a market capitalisation of nearly Rs 38,000 crore.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Mumbai: The government's Offer for Sale (OFS) in Cochin Shipyard Ltd (CSL) received an enthusiastic response from institutional investors on Tuesday. Bids worth more than Rs 2,900 crore were placed on the first day, leading to an oversubscription of the institutional portion.According to stock exchange data, non-retail investors bid for more than 2.10 crore shares, compared with around 59.66 lakh shares offered to them under the base issue.Government Exercises Green Shoe OptionFollowing the strong demand, the government decided to exercise the entire green shoe option, increasing the total number of shares available for sale.Cochin Shipyard Shares Fall 2% As Govt Plans To Launch OFSDepartment of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said the OFS was oversubscribed 3.52 times on the first day, reflecting strong investor interest in the PSU shipbuilder.Retail investors can participate in the OFS on July 8.Details Of The Share SaleThrough the two-day OFS, the government is selling up to 5.04 percent stake in Cochin Shipyard.The issue consists of a base offer of 2.52 percent equity and an additional 2.52 percent green shoe option, which can be exercised if demand remains strong.The floor price has been fixed at Rs 1,400 per share, nearly 7 percent lower than Monday's closing price of Rs 1,504.75.If the entire 5.04 percent stake is sold at the floor price, the government is expected to raise around Rs 1,800 crore.Stock Ends LowerDespite the strong institutional demand, Cochin Shipyard shares ended Tuesday's session 3.75 percent lower at Rs 1,448.30 on the stock exchange.The government currently owns 67.91 percent of the company. NLC India OFS Gets 5x Subscription On Day 1, Institutional Investors Place ₹4,158 Crore Bids For PSU Stake SaleDisinvestment Drive ContinuesThe Cochin Shipyard OFS is part of the government's broader disinvestment programme.So far in FY27, the Centre has raised Rs 18,561 crore through stake sales in six public sector companies, including Central Bank of India, Coal India, NHPC, NLC India, GIC and IRFC.For the full financial year, the government has set a target of Rs 80,000 crore through PSU disinvestment and asset monetisation, making Cochin Shipyard's successful OFS another important step towards achieving that goal.

Cochin Shipyard's OFS was fully subscribed, including the green-shoe option, as of 2:40 p.m. The government is looking to sell up to a 5.04% stake at a floor price of Rs 1,400 per share.

The Centre is selling a 2.52% stake in Cochin Shipyard Limited through an Offer for Sale. Non-retail investors can bid on July 7, 2026, and retail investors on July 8, 2026. This divestment supports the government's extensive maritime ecosystem expansion programs. Initiatives like the Maritime Development Fund and financial assistance schemes are bolstering the sector. The long-term Maritime Amrit Kaal Vision 2047 aims for significant growth by 2047.

Cochin Shipyard OFS: The government has announced to sell up to 5 per cent stake in Cochin Shipyard at a floor price of ₹1,400 per share through an offer for sale beginning Tuesday.