Shares of Cochin Shipyard Ltd. experienced a nearly 3% decline in early trading on Wednesday, July 8, 2026, hitting a day low of Rs 1,405.10 on the BSE. This dip occurred as the Central government's Offer for Sale (OFS) became accessible to retail investors, following a robust response from institutional and non-retail buyers a day prior.
Government Divests Stake Amid Strong Institutional Demand
The government is seeking to divest up to a 5.04% stake in the state-owned shipbuilder, which translates to over 1.32 crore equity shares. As of March 2026, the Centre held a substantial 67.91% stake in Cochin Shipyard. The floor price for the OFS has been set at Rs 1,400 per share.
The initial 2.52% base offer saw significant interest from institutional and non-retail investors on Tuesday, with a subscription rate of 3.52 times. This strong demand prompted the government to exercise its full 2.52% green shoe option, bringing the total stake on offer to 5.04% of the company's paid-up equity share capital.
Broader Disinvestment Strategy
This Cochin Shipyard OFS marks the seventh disinvestment transaction undertaken by the government in the current financial year (FY27). The Centre has set an ambitious target to mobilize Rs 80,000 crore through disinvestment and asset monetisation during FY27.
Previous disinvestment efforts in the current fiscal year have included Offer for Sales in other public sector entities such as Central Bank of India, Coal India, NHPC Ltd, NLC India Ltd, General Insurance Corporation of India (GIC Re), and Indian Railway Finance Corporation (IRFC).
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