New Delhi : In a significant step under its ongoing disinvestment program, the Government of India has expanded its Offer for Sale (OFS) in Cochin Shipyard Limited (CSL) by exercising the oversubscription option, doubling the issue size from 2.52% to 5.04% of the company’s paid-up equity share capital.
According to an official stock exchange filing made by the Ministry of Ports, Shipping and Waterways, acting on behalf of the President of India, the government will now sell up to 13,259,272 equity shares, representing 5.04% of Cochin Shipyard’s total paid-up equity capital.
Offer Size Doubled After Strong Investor Response
The original OFS included 6,629,636 equity shares, accounting for 2.52% of the company’s equity. However, following strong demand from institutional investors during the first day of the offering, the government exercised the oversubscription option, adding another 6,629,636 shares to the sale.
The move reflects robust market confidence in Cochin Shipyard and demonstrates investors’ continued interest in India’s public sector enterprises.
OFS Timeline
The Offer for Sale opened for non-retail investors on July 7, while retail investors, eligible employees, and non-retail investors carrying forward unallotted bids will be able to participate on July 8.
Reservation for Retail Investors and Employees
To encourage wider public participation, the government has reserved 1,325,928 equity shares, equivalent to 10% of the total offer size, for retail investors, subject to valid bids.
Additionally, 26,308 equity shares, representing 0.20% of the total issue, have been reserved for eligible employees of Cochin Shipyard.
Eligible employees can submit applications worth up to ₹5 lakh, although allocations during the first round will be considered for bids up to ₹2 lakh per employee.
Part of Government’s Disinvestment Strategy
The expanded OFS forms part of the Government of India’s broader disinvestment strategy, which aims to raise capital, improve public shareholding, and enhance market liquidity in listed Public Sector Enterprises (PSUs).
Despite the sale of additional shares, the Government of India will continue to remain the promoter of Cochin Shipyard Limited, maintaining its controlling stake in the company.
Impact on Investors
Market experts believe that the increased OFS size could improve stock liquidity, broaden the company’s shareholder base, and strengthen public participation in one of India’s leading shipbuilding and ship repair companies.
Investors are now expected to closely monitor the retail subscription on the second day of the offering, along with the final subscription figures, which will indicate the overall success of the share sale.
A successful completion of the OFS is also expected to provide momentum to the government’s ongoing efforts to monetize assets and accelerate its disinvestment roadmap while ensuring compliance with minimum public shareholding norms.
Key Highlights
- Government doubles Cochin Shipyard OFS from 2.52% to 5.04%.
- Total offer increased to 13.26 million equity shares.
- Oversubscription option exercised after strong investor demand.
- Retail investors receive a 10% reservation in the offer.
- Eligible employees receive a dedicated reservation with investment benefits.
- Government remains the promoter even after the stake sale.
- The move supports India’s broader PSU disinvestment strategy and is expected to improve market liquidity.
