India to Sell 5% Stake in Cochin Shipyard

The Indian government, through the Ministry of Ports, Shipping, and Waterways, is set to sell a 5% stake in Cochin Shipyard Limited via an Offer for Sale (OFS), with the offer scheduled to open on October 16 for non-retail investors and October 17 for retail investors. The floor price for the shares has been established at ₹1,540 each, with a base offer of 2.5% and an additional 2.5% available through an oversubscription option. Cochin Shipyard has reported significant growth, including a 76.5% year-on-year increase in net profit for the last quarter, reinforcing investor interest despite a 44% decline from its all-time high. The company has a market capitalization of approximately ₹44,000 crore, and its shares have seen a remarkable 145% rise year-to-date. Eligible employees can apply for shares worth up to ₹500,000, with 25,000 shares reserved for them. The stake sale is part of the government's broader divestment strategy aimed at raising capital from public sector enterprises.