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Centre Sells Up to 5.04% of Cochin Shipyard Through Two‑Day OFS

The government exercised the full green‑shoe after strong institutional demand to raise cash for its FY27 disinvestment programme while keeping majority control of the shipyard.

Overview

  • The two‑day offer for sale opened to non‑retail investors on July 7 and to retail bidders on July 8 with a floor price set at ₹1,400 per share.
  • Institutional bids on the first day exceeded ₹2,900 crore and the OFS was oversubscribed 3.52 times, prompting the government to exercise the full 2.52% green‑shoe and take the total on offer to 5.04%.
  • If the entire 5.04% is sold at the floor, the transaction will raise about ₹1,800 crore and cut the Centre’s stake from 67.91% to 62.87% while leaving the government as the majority owner.
  • Cochin Shipyard’s Q4 FY26 results show lower revenue but higher EBITDA and margins, and the stock fell roughly 3–5% in trading after the OFS opened despite heavy institutional demand.
  • The sale is one of several FY27 disinvestment moves that together are intended to help meet the government’s ₹80,000 crore target for disinvestment and asset monetisation this year.