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 Option
Following the strong demand, the government decided to exercise the entire green shoe option, increasing the total number of shares available for sale.
Department 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 Sale
Through 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 Lower
Despite 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.
Disinvestment Drive Continues
The 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.
