Cochin Shipyard OFS subscribed 3.52 times on Day 1; Centre exercises full green shoe option

The government's Offer for Sale (OFS) in Cochin Shipyard Limited received a strong response from institutional investors on Tuesday, with the non-retail portion being oversubscribed 3.52 times on the first day. Following the robust demand, the Centre has decided to exercise the entire green shoe option. 

Institutional investors placed bids worth more than ₹2,900 crore for the government's stake sale. According to stock exchange data, non-retail investors bid for over 2.10 crore shares against around 59.66 lakh shares reserved under the base offer. At the indicative price of ₹1,414.97 per share, the bids were valued at approximately ₹2,900 crore. 

Announcing the development, Arunish Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM), said in a post on X that the OFS had received an overwhelming response on the first day and that the government would exercise the entire green shoe option. Retail investors and eligible employees can bid for the issue on July 8. 

"Offer for Sale in Cochin Shipyard Ltd received an overwhelming response from the investors and was oversubscribed 3.52 times on day one. Government has decided to exercise the entire green shoe option. Retail investors and employees get to bid tomorrow on 8th July 2026," the post stated. 

Through the two-day OFS, the government is offering up to a 5.04% stake in Cochin Shipyard, comprising a base offer of 2.52% of the company's paid-up equity and an additional 2.52% under the green shoe option in case of oversubscription. 

The floor price has been fixed at ₹1,400 per share, representing a discount of around 7% to Monday's closing price of ₹1,504.75. At the floor price, the sale of the full 5.04% stake is expected to fetch around ₹1,800 crore for the exchequer. 

Shares of Cochin Shipyard closed 3.75% lower at ₹1,448.30 on the BSE on Tuesday. 

The government currently holds a 67.91% stake in the state-run shipbuilder. So far in the current financial year, the Centre has raised ₹18,561 crore through OFS transactions in six public sector enterprises, including Central Bank of India, Coal India Limited, NHPC Limited, NLC India Limited, General Insurance Corporation of India, and Indian Railway Finance Corporation. 

For FY27, the government has budgeted to raise ₹80,000 crore through public sector disinvestment and asset monetisation.