Cochin Shipyard OFS: Institutional Investors Bid for 74 Lakh Shares Against 59.66 Lakh Shares on Offer

New Delhi, July 7: Institutional investors on Tuesday oversubscribed the portion reserved for them in the government’s stake sale offer in Cochin Shipyard Ltd (CSL).

As against the base offer size of over 59.66 lakh CSL shares, institutional buyers put in bids for about 74 lakh shares — over-subscribing their portion 1.23 times. Bidding will continue till close of market hours.

The indicative price for the bids is Rs 1,401.85/share, as against the floor price of Rs 1,400/share.

Through the two-day Offer-for-Sale (OFS), the government is selling over 1.32 crore shares, or up to a 5.04 per cent stake in shipbuilding company CSL, which includes a base offer of 2.52 per cent of equity and an additional 2.52 per cent as the green-shoe option in case of oversubscription.

The 5.04 per cent share sale at the set floor price is expected to fetch about Rs 1,800 crore for the exchequer.

The floor price was set at a discount of 7 per cent over Monday’s closing price of Rs 1,504.75.

On Tuesday, the CSL scrip dipped 4.4 per cent in morning trade to a low of Rs 1,438. The scrip was quoting 2.84 per cent lower at Rs 1,462 in post-noon trade.

Retail investors can bid for the OFS on July 8. The government currently holds a 67.91 per cent stake in CSL.

So far in the current fiscal, the government has sold stake via OFS in six public sector entities — Central Bank of India, Coal India, NHPC, NLC India, GIC and IRFC — garnering a cumulative Rs 18,561 crore.

For the full fiscal, the government has budgeted to raise Rs 80,000 crore via PSU disinvestment and asset monetisation.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)