Cochin Shipyard OFS subscribed 3.52 times on Day 1, Govt exercises full green-shoe option
New Delhi, July 7
The Government of India's Offer for Sale in Cochin Shipyard Ltd received an overwhelming response from investors on the first day, with the issue being subscribed 3.52 times, prompting the government to exercise the entire green-shoe option.
The update was shared by the Secretary, Department of Investment and Public Asset Management (DIPAM), through a social media post on Tuesday.
According to the Secretary, the government has decided to exercise the entire green-shoe option following the strong response from investors. Retail investors and eligible employees will be able to place their bids on July 8.
The post stated "Offer for Sale in Cochin Shipyard Ltd received an overwhelming response from the investors and was oversubscribed 3.52 times on day one. Government has decided to exercise the entire green shoe option. Retail investors and employees get to bid tomorrow on 8th July 2026".
The government had announced the OFS on Monday with a base offer of 2.52 per cent of Cochin Shipyard's paid-up equity share capital. It had also included an additional 2.52 per cent under the green-shoe option, which could be exercised in case of oversubscription.
The floor price for the OFS was fixed at Rs 1,400 per share.
The offer opened for non-retail investors on Tuesday, while retail investors have been allowed to participate on Wednesday.
An Offer for Sale (OFS) is a stock market mechanism that enables promoters or large shareholders of listed companies to sell their existing shares directly to investors through a transparent bidding process on the stock exchanges.
The government had structured the Cochin Shipyard OFS with the provision to increase the size of the offer by exercising the green-shoe option if investor demand exceeded the base offer. Following the issue being subscribed 3.52 times on the first day, the government has now decided to fully exercise this option.
Despite the strong investor response to the OFS, shares of Cochin Shipyard Ltd ended the trading session lower on Monday. The stock declined by more than 5 per cent to close at Rs 1,430.70 per share.
The OFS forms part of the government's disinvestment programme through the Department of Investment and Public Asset Management (DIPAM), which periodically offers stakes in public sector enterprises to investors through the stock exchange mechanism.
With the entire green-shoe option now exercised, the focus shifts to retail investors and employees, who will bid for the shares on Tuesday.
— ANI
Reader Comments
Great news for retail investors like us who get to bid tomorrow! Cochin Shipyard is a strategic asset for India's maritime sector. However, I hope the government doesn't sell too much - we need to keep PSUs that are crucial for national security under public ownership. 🤔
Classic Indian stock market behaviour - oversubscribed but stock falls 5% 📉 Retail investors always end up buying at peak! The green-shoe option being fully exercised means more supply, which could pressure the price further. Let's see if the trend continues tomorrow.
As someone from Kerala, I'm proud to see Cochin Shipyard getting this attention. The company builds world-class vessels and has strong fundamentals. But the disinvestment process needs more transparency - why fix floor price at ₹1400 when market price was already above that? The small investor always gets confused. 😅
The DIPAM secretary deserves credit for efficient execution of OFS. But I wish the government would also focus on improving operational efficiency of such PSUs before selling stakes. Why are we always in a hurry to divest? At least keep the dividend-paying shares for long-term investors. 🇮🇳
The oversubscription shows strong retail sentiment, but let's not forget that shipbuilding is a cyclical industry. With global supply chain disruptions and defence deals, the future looks promising though. Employees should definitely bid tomorrow - employee quota is always a good bet! 💼
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