Cochin Shipyard shares fall 4% as govt launches ₹1,856 crore OFS
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Shares of Cochin Shipyard fell nearly 4% in early trade on Tuesday after the Centre launched an offer for sale (OFS) to divest up to a 5.04% stake in the state-owned shipbuilder. The stake sale is part of the government's ongoing disinvestment programme, under which the Centre has raised more than ₹16,000 crore through a series of OFSs over the past two months.
The PSU stock declined as much as 3.97% to ₹1,445 on the BSE after opening at ₹1,454.80. It had settled at ₹1,504.75 in the previous session. Around 0.72 lakh shares changed hands in early trade, dragging the company's market capitalisation to ₹37,949 crore.
Cochin Shipyard shares had touched a 52-week high of ₹2,075.30 on June 7, 2025, and a 52-week low of ₹1,186.55 on March 30, 2026. The stock has declined more than 11% so far in calendar year 2026 and nearly 30% over the past one year.
OFS floor price fixed at over 7% discount
The government has fixed the OFS floor price at ₹1,400 per share, representing a discount of more than 7% to Monday's closing price. At this price, the OFS is expected to fetch around ₹1,856 crore if the entire 5.04% stake, including the green shoe option, is fully subscribed.
According to the Department of Investment and Public Asset Management (DIPAM), the government will initially sell a 2.52% stake in Cochin Shipyard, with an option to divest an additional 2.52% through the green shoe option in case of oversubscription.
"Government announces Offer for Sale in Cochin Shipyard Ltd (CSL) with a base offer of 2.52% of its paid-up equity and an additional 2.52% as the green shoe option in case of oversubscription. The floor price has been fixed at ₹1,400 per share," DIPAM Secretary Arunish Chawla said in a post on X.
The OFS opened for non-retail investors on July 7, while retail investors will be able to place their bids on July 8.
Govt raises over ₹16,000 crore through OFSs in FY27
The stake sale is part of the Centre's ongoing disinvestment programme aimed at unlocking value from public sector enterprises while retaining management control.
The latest transaction adds to the government's recent pace of stake monetisation. Since May 21, the Centre has raised more than ₹16,000 crore through a series of OFSs. Last month, the government launched an OFS in General Insurance Corporation of India (GIC). The proposed sale was the fifth such transaction within a month, following stake sales in Coal India, Central Bank of India, NLC India, and NHPC.
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