Noida, July 7 (APAC Media): The Government of India has initiated a major disinvestment exercise by proposing the sale of up to a 5.04% stake in Cochin Shipyard Limited (CSL) through an Offer for Sale (OFS) route on stock exchanges.
The move is part of the government’s broader asset monetisation strategy aimed at unlocking value from public sector enterprises while encouraging wider public participation in equity ownership.
According to an official notice issued by Vipul Singhal, Director, Ministry of Ports, Shipping and Waterways, the base offer includes the sale of 6,629,636 equity shares, representing 2.52% of CSL’s total paid-up equity share capital.
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The government has also retained an oversubscription option to sell an additional 6,629,636 shares, taking the total stake sale potential to 13,259,272 shares, or 5.04%.
The floor price for the OFS has been fixed at ₹1,400 per equity share. The transaction is expected to generate more than ₹1,856 crore for the exchequer, depending on the final subscription levels and market participation.
A government official said the disinvestment process has been structured in line with the Securities and Exchange Board of India’s (SEBI) Comprehensive Framework for Offer for Sale of Shares through Stock Exchange Mechanisms.
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“The execution framework is fully aligned with the SEBI-prescribed guidelines for OFS transactions. The floor price has been determined after considering the institutional value of Cochin Shipyard while ensuring adequate participation from various categories of investors,” the official said in the filing.
The OFS will be conducted over two trading sessions.
The first day of bidding, scheduled for July 7, 2026, will be open exclusively to non-retail institutional investors. Retail investors and eligible employees will be allowed to participate on July 8, 2026.
Under the allocation framework, at least 25% of the offer shares have been reserved for mutual funds and insurance companies. A minimum of 10% of the shares will be earmarked for retail individual investors.
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In addition, 26,308 shares have been set aside for eligible employees at the final cut-off price determined through the bidding process.
An exchange official involved in the transaction process said the two-stage bidding mechanism was designed to ensure efficient price discovery and fair participation.
“The separation of institutional bidding on the first day and retail participation on the following day will support transparent price discovery. It will also allow retail investors to participate at the institutional cut-off price,” the official added.
Cochin Shipyard Stake Sale Highlights
| Key Details | Information |
|---|---|
| Company | Cochin Shipyard Limited (CSL) |
| Transaction Type | Offer for Sale (OFS) through stock exchanges |
| Seller | Government of India |
| Stake Offered (Base) | 2.52% equity stake |
| Additional Stake Option | 2.52% (oversubscription option) |
| Total Possible Stake Sale | Up to 5.04% |
| Total Shares Offered | Up to 13,259,272 equity shares |
| Base Offer Shares | 6,629,636 equity shares |
| Floor Price | ₹1,400 per share |
| Estimated Proceeds | More than ₹1,856 crore |
| OFS Day 1 | July 7, 2026 — Institutional investors |
| OFS Day 2 | July 8, 2026 — Retail investors and eligible employees |
| Retail Investor Reservation | Minimum 10% of offer shares |
| MFs & Insurance Companies Reservation | At least 25% of offer shares |
| Employee Reservation | 26,308 shares |
| Settlement Cycle | T+2 trade-for-trade settlement |
| Merchant Bankers | DAM Capital Advisors Limited, Axis Capital Limited, BOB Capital Markets Limited |
The stake sale is being managed by a consortium of leading merchant bankers, including DAM Capital Advisors Limited, Axis Capital Limited and BOB Capital Markets Limited.
The settlement of successful bids, along with unallotted carried-forward bids, will be completed on a trade-for-trade basis within the T+2 settlement cycle.
The government has also retained the right to withdraw or cancel the OFS in case of inadequate demand or failure of settlement obligations.
The proposed divestment marks another step in the Centre’s continuing efforts to monetise assets held by public sector enterprises while strengthening market participation in strategically important infrastructure companies.
–ENDS–
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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