The government of India has decided to sell a 5% stake in Cochin Shipyard through an offer for sale (OFS), setting ₹1,540 as the floor price.
What Happened: The OFS will open on October 16 for non-retail investors. The sale will be open to retail investors from October 17. The government will sell 65 lakh shares, or 2.5% of the equity stake in the company, which is the base option. It could sell another 2.5% through the green shoe option.
The floor price is around a 7.8% discount to Tuesday's closing price of ₹1671.95.
See Also: Quant Mutual Fund Exits IRCON In Q2, FIIs Also Cut Stake
The Government of India holds a 72.86% stake in Cochin Shipyard as of June 2024.
Cochin Shipyard shares had a tremendous run in the bourses over the last year along with the rest of the defence stocks. The stock has gained over 135% in 2024 so far, even though it has corrected over 40% from its highs in July.
The company had an order book of ₹22,500 order in Q1FY25 with ₹7,820 crore shipbuilding order pipeline.
Price Action: Shares of Cochin Shipyard fell 3.47% to ₹1,613.90 on Wednesday.
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