Cochin Shipyard Shares Fall 2% As Govt Plans To Launch OFS

Shares of Cochin Shipyard declined nearly 2% on June 22 after reports suggested that the government is likely to soon initiate an Offer for Sale (OFS) in the company.

A CNBC-TV18 report indicated that the move is part of the government’s broader strategy to raise funds through disinvestment in public sector undertakings (PSUs).

According to the report, the proposed OFS in Cochin Shipyard may be offered at a discount of around 6–8% compared to the prevailing market price.

Following the news, Cochin Shipyard shares trimmed losses and were trading about 1% lower at ₹1,444 per share.

Government data shows that it currently holds a 67.91% stake in the defence shipbuilding company.

The potential stake sale aligns with the Centre’s ongoing efforts to meet its disinvestment targets for the financial year.

So far in FY27, the government has raised over ₹16,000 crore through OFS transactions in various PSU companies.

This includes multiple divestment initiatives across sectors as part of its asset monetisation strategy.

Earlier in the week, the government successfully sold a 5% stake in General Insurance Corporation of India (GIC Re) through an Offer for Sale that received strong investor demand.

The transaction is expected to fetch around ₹3,000 crore for the exchequer, contributing to the overall PSU divestment proceeds for the fiscal year.

According to DIPAM Secretary Arunish Chawla, the GIC Re OFS saw full subscription, including both base and green-shoe options.

Non-retail investors had already oversubscribed the issue before it opened to retail participants.

The government had offered shares at a floor price of ₹352, which represented a discount of about 9.36% to the previous closing price. GIC Re shares ended lower following the pricing announcement.

Overall, PSU disinvestment has already yielded ₹13,389 crore in the current fiscal through stake sales in companies including Coal India, NHPC, Central Bank of India, and NLC India.

The government has set an ambitious target of ₹80,000 crore from PSU stake sales and asset monetisation in FY2026–27 and expects to exceed it through a strong pipeline of future offerings.