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By Dalal Street Investment Journal (DSIJ)
The Centre has launched an OFS for Cochin Shipyard Ltd as part of its FY27 disinvestment plan. The floor price is set at ₹1,400 per share, triggering a sharp decline in the stock during Tuesday's trade.
Cochin Shipyard’s share price fell more than 4% in early trade on Tuesday after the Centre announced an Offer for Sale (OFS) to divest up to a 5.04% stake in the company. The floor price for the OFS has been fixed at ₹1,400 per share, which is lower than the previous day's closing price.
The stake sale comes as the government aims to speed up its disinvestment programme. For FY27, the Centre has set a target of ₹80,000 crore through disinvestment and asset monetisation. This is around 135% higher than the revised estimate of ₹33,837 crore for FY26.
According to the exchange filing, the President of India, acting through the Ministry of Ports, Shipping and Waterways, will sell up to 66.29 lakh equity shares in the base offer. This represents 2.52% of the company's total paid-up equity share capital.
The offer will open for non-retail investors on July 7, 2026. Retail investors, eligible employees and non-retail investors carrying forward unallotted bids can participate on July 8, 2026.
Apart from the public offer, 26,308 equity shares have been reserved for eligible employees. This represents 0.20% of the total offer size, subject to approval from the competent authority.
Eligible employees can apply for shares worth up to ₹5 lakh through the stock exchange mechanism under the employee category.
Cochin Shipyard Ltd was incorporated in 1972 under a technical collaboration with Mitsubishi Heavy Industries. The company was established to provide shipbuilding and ship repair facilities for the Ministry of Shipping.
Following the announcement, the stock opened at ₹1,451.20 against its previous close of ₹1,506.40, which was a decline of 3.67%. During the session, the stock touched an intraday low of ₹1,437.50. This marked a fall of 4.57% from the previous closing price.
At around 12:04 PM IST, the stock was trading at ₹1,456.70, down ₹49.70 or 3.30% for the day.
The stock has also remained under pressure over a longer period. On a year-to-date basis, it has declined 10.19%. Over the past one year, the stock has fallen 28.98%
Source: Dalal Street Investment Journal (DSIJ), NSE
SEBI Registered Research Analyst (INH000006396).
Founded in 1986, Dalal Street Investment Journal (DSIJ) brings decades of experience in India’s equity markets. DSIJ's research combines fundamental analysis with price action, guided by disciplined risk management and capital preservation. They follow a structured, data-driven approach designed to help investors and traders make informed decisions beyond short-term market noise.
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