Cochin Shipyard share price dips 5% as government looks to sell stake worth ₹2,026 crore via OFS

  • Cochin Shipyard OFS: Cochin Shipyard share price took a hit on Wednesday, October 16, after the government announced plans to divest a 5% stake in the company through an offer for sale (OFS).

Shivangini
Published16 Oct 2024, 10:57 AM IST
Cochin Shipyard share price dips 5%, as government announces offload of stakes worth  <span class='webrupee'>₹</span>2,026
Cochin Shipyard share price dips 5%, as government announces offload of stakes worth ₹2,026(PTI)

Cochin Shipyard OFS: Cochin Shipyard share price declined as much as 4.90 per cent to 1,590 on the BSE during the early trading session on Wednesday, October 16 as the two-day offer for sale (OFS) by the government began for subscription today.

The Indian government on Tuesday said it plans to divest about 5 per cent of its stake in the company through an OFS, priced at 1,540 per share. This price reflects a 7.8 per cent discount to the previous day’s closing price, valuing the total stake at approximately 2,026 crore.

The divestment includes a base offer of a 2.5 per cent stake, with an option to sell an additional 2.5 per cent. 

Cochin Shipyard stock price was trading in the red, down 3.83 per cent, at Rs1,608 at 10:30 am on BSE.

“The Government of India proposes to sell up to 65,77,020 equity shares of the company, representing a 2.50% stake as a ‘Base Offer’ on October 16, 2024, for non-retail investors only, and on October 17, 2024, for retail investors,” the company stated in an exchange filing. “This will include an additional sale of 65,77,020 equity shares (representing 2.50% stake) as the ‘Oversubscription Option’ through a separate, designated window of the Stock Exchanges, collectively representing 5.00% of the total issued and paid-up equity share capital of the company,” the company said in an exchange filing.

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Non-retail investors can participate in the sale starting October 16, with retail investors following on October 17. As of June 30, the government held a 72.86 per cent stake in Cochin Shipyard.

Also Read | Companies News Today Live Updates on October 16, 2024: Rallis India Q2 Results Live: Profit Rise by 19.51% YOY

This fiscal year, the government has raised 31.61 billion from divestments but has not set a specific target for the year.

Cochin Shipyard, established in March 1972 as a fully-owned entity of the Government of India, is classified as a Schedule B Miniratna Public Sector Undertaking (PSU) under the Ministry of Shipping. The company specialises in constructing, repairing, and refitting various types of vessels, including ship upgrades and life extension services.

Also Read | Gold prices up as US dollar, treasury yields ease; how to trade MCX Gold?

Cochin Shipyard share price history

Year-to-date, Cochin Shipyard shares have outperformed the market, gaining 138.4 per cent. Meanwhile, the stock has risen 206.9 per cent over the past year. In comparison, the BSE Sensex has increased by 13.3 per cent year-to-date and 23.7 per cent over the past year.

The company’s total market capitalisation stands at 42,646.71 crore, with shares trading at a price-to-earnings multiple of 49.73 and earnings per share of 33.62. 

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First Published:16 Oct 2024, 10:57 AM IST
Business NewsMarketsStock MarketsCochin Shipyard share price dips 5% as government looks to sell stake worth ₹2,026 crore via OFS

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