Cochin Shipyard’s share price fell by 4.90% to ₹1,590 on the BSE during early trading on October 16, as the government initiated a two-day offer for sale (OFS). The Indian government announced on October 15 its plan to divest approximately 5% of its stake in the company at a price of ₹1,540 per share, reflecting a discount of 7.8% from the previous closing price and valuing the total stake at around ₹2,026 crore.
The OFS consists of a base offer of 2.5% of the company’s stake, with an option to sell an additional 2.5%. As of 10:30 am on the same day, Cochin Shipyard’s stock was down 3.83% at ₹1,608. The government intends to sell up to 65,77,020 equity shares on October 16 for non-retail investors and an additional 65,77,020 shares for retail investors on October 17, representing a total of 5% of the company’s equity capital.
Non-retail investors can begin participating in the OFS on October 16, while retail investors can join the following day. As of June 30, the government held a 72.86% stake in Cochin Shipyard. This fiscal year, the government has raised ₹31.61 billion from various divestments but has not set a specific target for the year.
Founded in March 1972, Cochin Shipyard is a fully-owned entity of the Government of India, classified as a Schedule B Miniratna Public Sector Undertaking (PSU) under the Ministry of Shipping. The company specializes in the construction, repair, and refitting of various types of vessels.
Year-to-date, Cochin Shipyard shares have significantly outperformed the market, increasing by 138.4%. Over the past year, the stock has risen by 206.9%, compared to a 13.3% increase in the BSE Sensex year-to-date and a 23.7% rise over the past year. The company’s total market capitalization is ₹42,646.71 crore, with shares trading at a price-to-earnings ratio of 49.73 and earnings per share of ₹33.62.
