Cochin Shipyard shares fall 5% after government launches OFS to sell up to 5% stake

"Offer for sale in Cochin Shipyard Limited (CSL) opens tomorrow for non-retail investors. Retail investors and employees of CSL can bid on Thursday, October 17th," Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey said on X.

The government currently holds 72.86% in Cochin Shipyard.

The Centre will divest 2.5% equity, or 65.77 lakh shares, with an option to sell an additional 2.5%. At a floor price of ₹1,540 a piece, the share sale of 5% stake would fetch about ₹2,000 crore to the exchequer.

The floor price is at a discount of close to 8% over Tuesday's closing price of ₹1,672 on the BSE. 

In September, Cochin Shipyard launched two anti-submarine warfare shallow water crafts that were manufactured here for the Indian Navy.

Cochin Shipyard Q1 FY25 Results

Cochin Shipyard announced a 76.61% year-on-year (YoY) rise in its Q1 FY25 net profit to ₹174.2 crore. The company’s consolidated total income for the quarter came in higher by 52.77% YoY to ₹855.4 crore. 

For the quarter ended June 30, 2024, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood higher by 60.55% YoY to ₹261 crore.

The company’s earnings per share grew by 76.53% YoY to ₹6.62.

During Q1FY25, Cochin Shipyard’s shipbuilding segment saw its revenue grow by 61.77% YoY to ₹526 crore. Meanwhile, the revenue from the ship repair segment grew by 62.88% YoY to ₹244.77 crore.

The profit before interest and taxes (PBIT) for the shipbuilding segment grew by 44.67% YoY, while the PBIT of the ship repair segment skyrocketed by 188.50% YoY.

Cochin Shipyard stock performance

The share price of the PSU has jumped over 215% in the past 12 months and 145% year-to-date.