Cochin Shipyard Drops 4% as Government's 5% Stake Sale via OFS Begins at Discount

Shares of Cochin Shipyard fell over 4% on October 16, as the government launched an offer-for-sale (OFS) to offload a 5% stake in the public sector company. The OFS is priced at a floor of Rs 1,540 per share, reflecting a 7% discount from the last closing price.

The offer includes a base 2.5% stake, or 66 lakh shares, and a green shoe option for an additional 2.5%. The sale opened today for non-retail investors and was subscribed 1.76% by 10:30 am. Retail investors can participate starting October 17.

The government owns 72.86% of the shipbuilder, which is down 42% in the last three months but up 137% year-to-date. The company posted a 77% increase in net profit at Rs 174.2 crore for Q1 FY25, which was down 33% sequentially. Order book of Cochin Shipyard stood at Rs 22,500 crore at the end of September while the pipeline was Rs 7,820 crore in shipbuilding projects.

Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com

_{^{Source: Moneycontrol}}