Govt to sell up to 5.04% stake in Cochin Shipyard via OFS; floor price fixed at ₹1,400 a share

Published 6 July 2026 · finance

The Centre on Monday announced an offer for sale (OFS) of up to 5.04% in Cochin Shipyard Ltd, marking another minority stake sale by the

The Centre on Monday announced an offer for sale (OFS) of up to 5.04% in Cochin Shipyard Ltd, marking another minority stake sale by the government as it looks to meet its FY27 disinvestment target through market transactions. “The OFS comprises a base offer of 2.52% of the company's paid-up equity share capital, along with an additional 2.52% green-shoe option that may be exercised in case of oversubscription. The floor price has been fixed at ₹1,400 per share,” Arunish Chawla, secretary at the department of investment and public asset management (DIPAM), wrote in a post on X on Monday. The offer will open for non-retail investors on 7 July, while retail investors will be able to bid on 8 July, in line with the standard OFS mechanism followed for listed public-sector companies, he added.

The sale is expected to help the Centre mobilise more resources under its FY27 disinvestment programme. In the Union Budget for 2026-27, the government set a target of ₹80,000 crore from disinvestment and asset monetisation. So far, it has mobilised ₹24,928.09 crore, including ₹18,561.16 crore through disinvestment and ₹6,366.93 crore through asset monetisation, achieving about 31.2% of the full-year target. As of Monday's closing price of ₹1,504.75, the Centre's 67.91% stake, comprising 178.67 million shares, was valued at ₹26,885.55 crore. The OFS floor price of ₹1,400 is at about 7% discount to the closing price. If the entire offer, including the green-shoe option, is subscribed, the government's stake in Cochin Shipyard Ltd will drop from 67.91% to 62.87%, and it will continue to retain majority ownership and management control of the company.

Disinvestment spree So far in FY27, the government has raised ₹18,561.16 crore through disinvestment transactions. These include An 8.08% stake stake in Central Bank of India, which fetched ₹ 2,266.13 crore; a 2% stake in Coal India Ltd for ₹ 5,542.36 crore; a 6.01% stake in NHPC Ltd for ₹ 4,357.36 crore; a 2.73% stake in NLC India Ltd for ₹ 1,223.57 crore; a 5% stake in General Insurance Corporation of India for ₹ 3,090.47 crore; and a 1.75% stake in Indian Railway Finance Corporation Ltd, which garnered ₹ 2,081.27 crore. Also Read | Defence Shipbuilding stocks rise amid multi-year growth forecast An OFS allows promoters to sell shares through the stock exchange platform in a transparent bidding process.

Under the mechanism, institutional investors bid on the first day of the issue, followed by retail investors on the second day. The green-shoe option gives the seller the choice to offload additional shares if demand exceeds the base offer, thereby maximising proceeds from the transaction.