The government is set to divest up to 5% stake in Cochin Shipyard via an Offer for Sale (OFS). The base offer is 2.5% with an additional 2.5% green shoe option. The floor price is ₹1,540 per share, which is an 8% discount to the company’s Tuesday closing price. The OFS for non-retail investors opens on October 16, while retail investors can participate starting October 17.
The base offer size includes 65,77,020 equity shares, representing 2.5% of the company’s equity. There is also an oversubscription option for an additional 2.5%, taking the total to 5%. The offer will be executed on the stock exchanges via a separate window on October 16, 2024 (for non-retail investors) and October 17, 2024 (for retail investors, employees, and un-allotted bids from non-retail investors).
The floor price for the OFS has been set at ₹1,540 per share, with no discount for retail investors. Eligible employees may apply for equity shares worth up to ₹2 lakh, with 25,000 shares reserved for them, constituting 0.19% of the offer size.
The government aims to raise substantial capital through this stake sale in Cochin Shipyard, providing investors the opportunity to invest in a prominent public sector shipbuilding and maintenance company. The allocation will be made on a price-priority basis for non-retail investors, while retail investors may bid at the cut-off price.
The offer is being managed by brokers including DAM Capital Advisors, Axis Capital, and BOB Capital Markets. The shares will be available for trading on both BSE and NSE.
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