Shares of Cochin Shipyard Ltd experienced a notable decline of over 4% on Monday, hitting a low of Rs 1,438 on the BSE. This downturn coincided with the commencement of a two-day Offer for Sale (OFS) by the government, targeting non-retail investors on the first day.
The primary reason for the stock's dip was the OFS floor price, established at Rs 1,400 per share. This price marked a significant 6.96% discount when compared to the stock's closing price of Rs 1,504.75 apiece on the preceding Monday.
Government Trims Stake in Defence PSU
The government, which held a 67.91% stake in the defence Public Sector Undertaking (PSU) at the end of the March quarter, aims to offload up to 66,29,636 Cochin Shipyard shares. There is also an option to sell an additional 66,29,636 shares in case of oversubscription, bringing the total potential offering to nearly 1.2 crore shares including the green shoe option and retail portion.
On the opening day, July 7, 2026, non-retail investors were permitted to place their bids. These investors also had the option to carry forward any un-allotted bids to the subsequent day, to be considered in the unsubscribed portion of the retail category.
OFS Bidding Details and Schedule
The OFS process is structured across two days. For non-retail investors, bidding commenced at 9:15 a.m. and concluded at 3:30 p.m. Indian Standard Time on July 7, 2026. The base offer size for non-retail investors was 59,66,672 shares, with an oversubscription option for an equal number of shares.
Retail investors and eligible employees of Cochin Shipyard will have their bidding window on T+1 Day, which is July 8, 2026. Up to 26,308 shares are specifically allocated for eligible employees, who can apply for equity shares worth up to Rs 5,00,000, in line with OFS guidelines.
Seventh PSU Disinvestment in FY27
This Cochin Shipyard OFS marks the seventh instance of the government trimming its exposure in a PSU during the current financial year (FY27). Earlier disinvestments in FY27 included stakes in IRFC Ltd, General Insurance Corporation of India (GIC Re), NLC India Ltd, NHPC Ltd, Coal India Ltd, and Central Bank of India, collectively raising Rs 18,561.16 crore for the government.