Cochin Shipyard Shares Down 4% as Rs 1,800 Crore OFS Opens

New Delhi, July 7: The government’s up to 5.04 per cent stake sale offer in Cochin Shipyard at a floor price of Rs 1,400 per share opened for institutional investors on Tuesday.

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.

Through the two-day offer for sale (OFS), the government is selling over 1.32 crore shares, or up to 5.04 per cent stake in shipbuilding company CSL, which include 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 over subscription.

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

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.