New Delhi: The government’s stake sale in Cochin Shipyard Limited (CSL) received a strong response from institutional investors on Tuesday, with bids worth more than ₹2,900 crore placed for the Offer for Sale (OFS).
According to stock exchange data, non-retail investors placed bids for over 2.10 crore shares, compared with the base offer size of around 59.66 lakh shares reserved for institutional buyers. The strong demand led to the institutional portion being oversubscribed by multiple times.
CSL OFS Oversubscribed 3.52 Times on First Day
Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla announced that the Cochin Shipyard OFS received an overwhelming response from investors.
He said the offer was:
- Oversubscribed 3.52 times on the first day
- Supported by strong institutional participation
- Expanded through the exercise of the full green shoe option
The green shoe option allows the government to sell additional shares when demand exceeds the initial offer size.
Read also: Leadership Continuity: Cochin Shipyard Extends Additional Charge of CMD to Jose V J for 3 Months
Government Selling 5.04% Stake in Cochin Shipyard
Through the two-day Offer for Sale, the government is selling up to 1.32 crore shares, representing a 5.04% stake in Cochin Shipyard Limited.
The stake sale includes:
- 2.52% base offer
- Additional 2.52% green shoe option
The government has fixed the floor price at ₹1,400 per share for the OFS.
At the floor price, the complete 5.04% stake sale is expected to generate around ₹1,800 crore for the exchequer.
Retail Investors Can Participate on July 8
The OFS was opened for institutional investors on Tuesday, while retail investors will be able to submit bids on July 8.
The indicative bidding price of ₹1,414.97 per share resulted in total institutional bids worth approximately ₹2,900 crore.
CSL Share Price and Government Holding Details
The floor price of ₹1,400 per share was set at around a 7% discount compared with CSL’s previous closing price of ₹1,504.75.
On Tuesday, Cochin Shipyard’s stock closed 3.75% lower at ₹1,448.30.
Before the OFS, the government held a 67.91% stake in Cochin Shipyard Limited.
Government Continues PSU Disinvestment Drive
The CSL stake sale is part of the government’s ongoing disinvestment programme.
During the current financial year, the government has already sold stakes through OFS in six public sector companies:
- Central Bank of India
- Coal India
- NHPC
- NLC India
- GIC
- IRFC
These stake sales have generated a combined ₹18,561 crore so far.
For the entire financial year, the government has set a target of raising ₹80,000 crore through PSU disinvestment and asset monetisation.
About Cochin Shipyard Limited (CSL)
Cochin Shipyard Limited (CSL) is one of India’s leading shipbuilding and ship repair companies. A public sector enterprise under the Ministry of Ports, Shipping and Waterways, CSL builds and repairs commercial vessels, defence ships, and specialized marine assets. The company plays an important role in strengthening India’s maritime infrastructure and supporting the country’s shipbuilding capabilities.
