The Government of India has announced an Offer for Sale (OFS) to divest up to 5.04% of its stake in Cochin Shipyard Ltd (CSL). The floor price has been fixed at ₹1,400 per share, representing a discount of over 7% to the stock’s previous closing price. The move is part of the Centre’s ongoing disinvestment programme to raise resources while broadening public shareholding in public sector enterprises.
The OFS comprises a base offer of 2.52% of the company’s paid-up equity, along with an additional 2.52% green-shoe option, which may be exercised if investor demand is strong. Bidding opened for non-retail investors on July 7, while retail investors can participate on July 8.
The proposed stake sale could help the government mobilise nearly ₹1,850 crore, depending on the level of subscription. Following the announcement, Cochin Shipyard shares declined in early trading as investors reacted to the discounted OFS pricing and the expected increase in share supply.
Cochin Shipyard is one of India’s leading shipbuilding and ship repair companies, catering to both commercial and defence sectors. The PSU has played a key role in strategic naval projects and remains central to India’s maritime and defence manufacturing ambitions. The stake sale aligns with the government’s broader strategy of unlocking value in public sector enterprises while retaining management control.
