Shares of Cochin Shipyard fell over 4 percent on October 16 as the government's offer-for-sale to offload a 5 percent stake in the PSU company opened today. Through the OFS, the government intends to pare stake at a floor price of Rs 1,540 per share, implying a discount of 7 percent from the previous closing level.
The OFS includes a base offer of 2.5 percent stake or 66 lakh shares, as well as a green shoe option of another 2.5 percent. The OFS which opened today for non-retail investors was subscribed 1.76 percent by 10.30 am. As for retail investors, the issue will open on on October 17. The indicative price for the non-retail category will be released separately.
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The government currently owns a 72.86 percent stake in Cochin Shipyard as per the company's latest shareholding data.
At 10.34 am, shares of Cochin Shipyard were trading at Rs 1,606 on the NSE. Despite a sharp correction over the past three months, during which the stock lost nearly 42 percent of its value, it remains up over 137 percent year-to-date.
The shipbuilder reported a 77 percent spike in net profit to Rs 174.2 crore in the first quarter of FY25, compared to Rs 98.6 crore during the same period last year. Prior to that however, the PSU firm's net profit declined by 33 percent from Rs 258.8 crore in the March quarter.
As of September end, the company boasts an order book of Rs 22,500 crore, along with an order pipeline for shipbuilding projects valued at Rs 7,820 crore.
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