Cochin Shipyard OFS kicks off: Shares fall over 4% as govt begins 5% stake sale — key details

Shares of Cochin Shipyard declined as much as 4.4% to ₹1,440 apiece on the NSE on Tuesday, July 7, as in the latest disinvestment drive, the government on Monday, post-market hours, announced that it would sell up to a 5% stake in the state-run shipbuilder at a floor price of ₹1,400 per share through an offer for sale (OFS) beginning Tuesday.

With this, the government has launched its seventh disinvestment drive to date.

The "government announces offer for sale in Cochin Shipyard Ltd (CSL) with a base offer of 2.52 per cent of its paid-up equity and an additional 2.52 per cent as the green-shoe option in case of oversubscription," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said on X.

Cochin Shipyard OFS: Key details

The offer for sale (OFS) opens for non-retail investors on July 7, 2026. Retail investors can bid on July 8, 2026.

The floor price has been fixed at ₹1,400 per share. This is around a 7% discount to the closing price of ₹1,504.75 on the BSE.

The government currently holds a 67.91% stake in CSL.

So far in the current fiscal, the government has sold stakes via OFS in six public sector entities -- Central Bank of India, Coal India, NHPC, NLC India, GIC and IRFC, garnering a cumulative ₹18,561 crore.

For the full fiscal year, the government has budgeted to raise ₹80,000 crore via PSU disinvestment and asset monetisation.

Disinvestment Summary

What is an OFS by the government

An Offer for Sale (OFS) is a mechanism through which the government sells a part of its stake in public sector companies directly on the stock exchanges. Instead of issuing new shares, the government offers its existing shares for sale, allowing institutional and retail investors to buy them at a pre-announced floor price.

The government uses the OFS route to raise funds, meet its annual disinvestment targets, improve public shareholding in state-owned companies, and unlock value from its investments.

Since the company is not issuing new shares, the money raised through an OFS goes to the government, not to the company itself.

About Cochin Shipyard

Established in 1972, Cochin Shipyard Ltd (CSL) is one of India's leading shipbuilding and ship repair companies. Headquartered in Kochi, Kerala, the state-owned enterprise builds and repairs a wide range of commercial vessels as well as defence platforms for the Indian Navy, the Indian Coast Guard, and international clients.

CSL is a Miniratna public sector undertaking under the Ministry of Ports, Shipping and Waterways. Over the years, it has collaborated with global technology partners to strengthen its shipbuilding capabilities and expand its expertise in complex marine projects.

The company has played a key role in India's maritime and defence sectors. It built the country's first indigenous aircraft carrier, INS Vikrant, and continues to execute strategic naval programmes while also catering to the commercial shipping industry. Cochin Shipyard is also involved in training and developing skilled marine engineering professionals, supporting the growth of India's maritime ecosystem.