Cochin Shipyard Share Price Falls as Retail OFS Opens; Check Floor Price, Eligibility and Steps to Subscribe

Shares of Cochin Shipyard Ltd, one of India's leading defence shipbuilding and ship repair public sector enterprises, traded lower on Wednesday as the retail leg of the Centre's Offer for Sale (OFS) opened for subscription. The stock came under pressure after the government decided to increase the size of the divestment by exercising the full greenshoe option following robust demand from institutional investors.

Cochin Shipyard Share Price Today on NSE

At around 10:05 AM, Cochin Shipyard shares were trading 2.85% lower at Rs 1,404.50 on the NSE. The stock opened at Rs 1,419, touched an intraday high of Rs 1,428.90, and slipped to a low of Rs 1,401.50, hovering just above the OFS floor price.

Government expands Cochin Shipyard OFS after strong institutional response. The Centre initially proposed to offload a 2.52% stake, equivalent to nearly 66.29 lakh equity shares, through the OFS route. However, after the issue received 3.52 times subscription from institutional and other non-retail investors on the first day, the government exercised the entire greenshoe option.

With the additional shares now included, the total stake sale has increased to 5.04%, taking the overall offer size to more than 1.32 crore shares. At the notified floor price of Rs 1,400 per share, the divestment is expected to generate nearly Rs 1,800 crore for the government.

Despite reducing its holding through the transaction, the Centre will continue to remain the majority shareholder in the strategic defence PSU.

Cochin Shipyard OFS Open for Subscription: Important Details Investors Should Know

The floor price for the retail OFS has been fixed at Rs 1,400 per share. Investors must place bids at or above this price, as bids below the floor price will not be considered.

During the institutional bidding window, the indicative discovered price stood at Rs 1,401.85 per share, marginally higher than the floor price, reflecting healthy demand from large investors.

The final allotment for retail participants will depend on the total number of valid applications, overall retail demand and the exchange's allotment mechanism.

How to subscribe to the Cochin Shipyard OFS

Unlike an Initial Public Offering (IPO), an Offer for Sale is conducted through the stock exchanges since the company's shares are already listed.

Retail investors can participate by following these steps:

• Log in to your broker's trading platform or mobile application.
• Open the Offer for Sale (OFS) section available under equity offerings.
• Select Cochin Shipyard Ltd from the list of available OFS issues.
• Enter the number of shares you wish to purchase.
• Quote a bid price of Rs 1,400 or above.
• Review the order details and submit the application before the exchange deadline.

Ensure sufficient funds are available in the trading account, as the required amount will remain blocked until allotment is completed.

If shares are allotted, they will be credited to the investor's demat account on the settlement date. If not, the blocked amount will be released.

The Cochin Shipyard stake sale forms part of the government's ongoing divestment programme aimed at monetising holdings in profitable public sector enterprises through the stock exchange mechanism.

Should Retail Investors Apply?

The OFS presents investors with an opportunity to purchase shares of a leading defence shipbuilder at a predefined floor price. However, the floor price should not be viewed as an automatic discount or guarantee of gains.

Investors should compare the offer price with prevailing market levels, evaluate the company's long-term growth prospects, order pipeline, execution capabilities and valuation before making an investment decision. Short-term volatility may persist until the OFS allotment and settlement process is completed.

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