Cochin Shipyard Shares drop 4% on Government OFS

Cochin Shipyard shares drop 4% on government OFS. Government sets floor price at Rs 1,540 per share. OFS sees 1.76% subscription by 10:30 AM. The government is selling a 5% stake in the company through an offer-for-sale (OFS). The floor price is a 7% discount to the previous closing price. Retail investors will have access to the offer starting October 17.

Cochin Shipyard Shares drop 4% on Government OFS

On October 16, Cochin Shipyard’s shares dropped by more than 4 percent as the government began its offer-for-sale (OFS) to reduce a 5 percent stake in the public sector company. The government set a floor price of Rs 1,540 per share for the OFS, representing a 7 percent discount from the stock’s previous closing price. The sale includes a base offer of a 2.5 percent stake, or 66 lakh shares, with an option to sell an additional 2.5 percent.

The OFS opened for non-retail investors today and saw a 1.76 percent subscription by 10:30 a.m. Retail investors will have access to the offer starting October 17, with a separate indicative price for non-retail investors. The government currently holds a 72.86 percent stake in Cochin Shipyard, according to the latest data.

At 10:34 a.m., the company’s shares were trading at Rs 1,606 on the NSE. While the stock has experienced a sharp 42 percent decline over the past three months, it is still up by more than 137 percent year-to-date. In the first quarter of FY25, Cochin Shipyard posted a 77 percent increase in net profit, reaching Rs 174.2 crore, compared to Rs 98.6 crore in the same period last year. However, in the previous quarter, the company’s net profit fell by 33 percent from Rs 258.8 crore. As of the end of September, Cochin Shipyard had an order book worth Rs 22,500 crore and an additional shipbuilding project pipeline valued at Rs 7,820 crore.

The domestic markets remained volatile and closed with slight losses, extending their current corrective phase. In today’s session, stocks such as Bajaj Auto, Cochin Shipyard, LTTS, Central Bank of India, and Rallis India will be in the spotlight due to various news updates and second-quarter earnings reports.