Govt to offload up to 5.04% stake in Cochin Shipyard via OFS at ₹1,400 floor
The President of India will sell up to 5.04% of Cochin Shipyard, with a base offer of 2.52% and an oversubscription option. Non-retail bidding opens July 7, retail and employees on July 8.
What changed
- Government launches OFS for up to 5.04% stake in Cochin Shipyard at ₹1,400 floor price.
- Base offer of 2.52% equity (66,29,636 shares) with oversubscription option for another 2.52%.
- Employee reservation of 26,308 shares (0.20%) subject to approval; max application ₹5,00,000.
The read
The President of India is divesting up to 5.04% of Cochin Shipyard through an OFS, with a base of 2.52% and an oversubscription option. The floor price of ₹1,400 will anchor the auction. Non-retail investors bid on July 7, followed by retail and employees on July 8. The 26,308 shares reserved for employees (subject to approval) is a token allocation, but the real weight is the government's exit, which adds material supply and could weigh on the stock near the floor. This is a clean, standard OFS execution with no regulatory surprises—traders should watch the clearing price and the extent of undersubscription or oversubscription.
Primary source: official circular (PDF)