The Centre has launched an Offer for Sale (OFS) to divest up to 5.04% stake in Cochin Shipyard Ltd, aiming to raise nearly ₹1,800 crore through the share sale. The two-day OFS opened for institutional investors on Monday, while retail investors can bid on Tuesday.
The government has fixed the floor price at ₹1,400 per share, a discount to the stock’s previous closing price to encourage wider participation. The offer includes a base sale of 2.5% equity, with an additional 2.54% stake available under the green shoe option if demand remains strong.
Following the announcement, shares of the state-owned defence and shipbuilding company came under pressure. The stock fell around 4% during trading as investors reacted to the discounted offer price and the increase in the number of shares available in the market.
Despite the short-term decline, market analysts said the OFS is part of the government’s broader disinvestment programme and does not alter Cochin Shipyard’s long-term business prospects. The company continues to benefit from a healthy order book, rising defence spending and increasing opportunities in commercial shipbuilding and ship repair.
The government currently holds a majority stake in Cochin Shipyard, and the latest OFS is expected to improve public shareholding while helping the Centre meet its disinvestment targets for the financial year.
Retail investors have been offered the opportunity to participate in the sale on the second day of the issue, with reservations made specifically for them. Analysts believe the discounted pricing could attract long-term investors despite the temporary weakness in the stock.
Cochin Shipyard remains one of India’s leading public sector shipbuilders, executing projects for the Indian Navy, Coast Guard and commercial shipping companies. Its strong execution capabilities and robust order pipeline continue to support investor confidence.
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