Cochin Shipyard offer for sale gets enthusiastic response: DIPAM
Government Divests 5% Stake in Cochin Shipyard, Sees Strong Investor Interest
Government Sells Stake in Cochin Shipyard Amid Strong Investor Demand
The government has successfully sold 5% of its shares in Cochin Shipyard Limited (CSL), drawing strong interest from investors. As part of the Offer for Sale (OFS), 2.5% of the shares were sold initially, with an extra 2.5% available through the green shoe option.
The two-day sale was held to raise funds and reduce the government’s ownership in CSL, one of India’s top shipbuilding companies. On October 16, 2024, the OFS opened for non-retail investors, including large institutions. The response was overwhelming, with the offering subscribed 2.16 times the initial size, showing high demand from institutional buyers. Due to this strong demand, the government decided to activate the green shoe option, making more shares available for purchase.
On the next day, October 17, the OFS opened for retail investors and CSL employees. Retail investors, including individual buyers, showed great interest, reflecting their confidence in the future of CSL. This positive participation highlights the belief that CSL will continue to grow in both defense and commercial shipbuilding.
The sale is part of the government’s larger divestment program, aimed at reducing stakes in public sector companies and raising funds to meet financial goals. Cochin Shipyard has a solid reputation for building and repairing ships, which makes it an attractive choice for investors.
The success of this OFS shows the positive outlook for CSL. Investors see it as an opportunity to be part of the company’s growth story. With this sale, the government not only moved closer to meeting its divestment targets, but also gave the public a chance to benefit from CSL’s future success.
This OFS marks another important step in the government’s strategy to manage public sector assets efficiently while creating opportunities for market investors.
