The Government of India will place up to 5.04% of its equity in Cochin Shipyard on the market through an offer for sale (OFS), according to a post from the secretary of the Department of Investment and Public Asset Management on X.
The transaction is structured with a base tranche representing 2.52% of the company, and an option to sell an additional 2.52% if demand exceeds the base allocation. The government's stake in Cochin Shipyard stood at 67.92% as of March 31, based on exchange data cited in the announcement.
Authorities have set the floor price for the OFS at 1,400 rupees per share, which is equivalent to $14.68 at the conversion noted in the announcement. That floor represents a discount of more than 7% relative to Cochin Shipyard's last reported closing price.
An offer for sale permits large shareholders to sell existing shares to the public via stock exchanges without the company issuing fresh equity. In this instance, the OFS will accept bids from non-retail investors beginning on Tuesday, while retail participation will be opened on Wednesday.
The move forms part of the government's divestment and asset monetisation programme. In the Union Budget 2026-27, the government set a target of 800 billion rupees to be raised from divestment and asset monetisation initiatives; this sale is presented as one element of that broader effort.
The announcement provides concrete terms for the sale - the split between the base offer and the oversubscription option, the government ownership level as of the last quarter-end, and the discounted floor price - and sets a timetable for investor participation across non-retail and retail channels. Beyond those details, the statement does not provide additional information on underwriting, timeline for allotment, or how the proceeds will be applied.
Summary of the offer
- Base OFS: 2.52% equity stake in Cochin Shipyard.
- Additional tranche: up to 2.52% if the base offer is oversubscribed - total potential sale 5.04%.
- Government stake as of March 31: 67.92%.
- Floor price: 1,400 rupees ($14.68) per share, a discount of more than 7% to the last close.
- Subscription schedule: non-retail investors - Tuesday; retail investors - Wednesday.