Government Announces 5% Cochin Shipyard Stake Sale Through OFS at INR 1,400 Per Share
The Government of India has announced an Offer for Sale (OFS) to disinvest up to 5.04 per cent ownership in Cochin Shipyard at a floor price of Rs 1,400 per share. Non-retail investors can place bids from July 7 while retail bidding will be held on July 8.
In response to the Indian government's offer for sale (OFS) to sell up to 5.04% of its shares in the state-owned shipbuilder Cochin Shipyard, the stock fell 3.77% to INR 1,448. At the base offer, the Indian president is proposing to sell up to 66.29 lakh equity shares, which is equivalent to 2.52% of the company's holding, via the Ministry of Ports, Shipping and Waterways.
A total of 1.33 crore equity shares, or 5.04% of the company’s paid-up equity capital, would be offered, with the government having the option to sell an extra 66.29 lakh shares if demand exceeds supply. Retail investors, qualifying employees, and non-retail investors who choose to carry forward unallotted bids can participate on 8 July 2026, whereas the OFS launched for non-retail investors on 7 July 2026.
How Govt Planned to Execute CS’ Equity Sale?
The OFS floor price is set at INR 1,400/share, which is a 6.96% discount to the BSE closing price of INR 1,504.75 the previous day. Retail investors would receive 6.63 lakh shares, while non-retail investors will receive 59.67 lakh shares in the base offer. The retail allotment might go up to 13.26 lakh shares, and the non-retail part could go up to 1.19 crore shares if the oversubscription option is exercised. A total of 95,750 shares, or 1.60% of the total, were subscribed for in the non-retail segment as of July 7, 2026.
The 100% margin category received bids for 31,350 shares, while the 0% margin category received bids for 64,400 shares. Shares were being offered at an indicative price of INR 1,402.17. It is planned that the retail bidding window will open on 8 July. In addition, eligible employees can reserve up to 26,308 shares through the OFS. The maximum amount that employees can bid for shares is INR 5 lakh.
Cochin Shipyard is a prominent entity in the construction of a wide range of vessels, as well as the repair and refit of these vessels, which includes periodic improvements and ships' life extensions. In comparison to the same quarter in FY25, the company's consolidated net profit fell 3.72% to INR 276.48 crore, while its income from operations fell 15.55% to INR 1,484.27 crore.
Legacy of Cochin Shipyard
Cochin Shipyard Ltd (CSL) is a prominent shipbuilding and ship repair company in India. It was established in 1972. Based in Kochi, Kerala, this state-owned company constructs and maintains commercial ships and defence platforms for clients all over the world, including the Indian Navy, the Indian Coast Guard, and other government agencies. The Ministry of Ports, Shipping and Waterways oversees CSL, a Miniratna public sector operation.
They have worked with tech companies all around the world to improve their shipbuilding skills and increase their knowledge of complicated marine projects. In India's defence and maritime industries, the company has been pivotal. It continues to serve the commercial maritime industry in addition to executing critical naval programmes; it built the first indigenous aircraft carrier, INS Vikrant. To further contribute to the development of India's maritime ecosystem, Cochin Shipyard is also engaged in the training and development of competent marine engineering personnel.
