Cochin Shipyard OFS at Rs 1,400/share floor price hits Street soon

The central government on Monday announced an offer for sale (OFS) for Cochin Shipyard Ltd (CSL), a category 1 central public sector enterprise (CPSE).

The offer will open for non-retail investors on Tuesday, July 7, according to an official notification by the DIPAM Secretary.

The development confirms an earlier newsbreak by Zee Business.

At the end of the final quarter of FY26, the central government held a 67.91 per cent stake in Cochin Shipyard.

Cochin Shipyard OFS details

According to the official, under the offer for sale, the government will offload 2.52 per cent of its paid-up equity in the PSU and an additional 2.52 per cent under the green-shoe option in case of oversubscription.

A floor price of Rs 1,400 per share has been fixed for the issue.

When will retail investors be able to participate in the Cochin Shipyard OFS?

The issue will open for retail individual investors (RIIs) on July 8.

7.0% discount to market price

Earlier on Monday, the Cochin Shipyard stock fell by Rs 19 -- or 1.4 per cent -- to close at Rs 1,504.8 apiece on BSE. The floor price marks a 7.0 per cent discount to the market price.

In an OFS, an existing shareholder -- such as the government or a promoter -- trims their stake in a listed company through the stock exchange.

Through this route, investors buy these shares directly from the seller.

Since the shares already exist, the money goes to the shareholder selling them, not to the company. The company itself does not receive any funds from an OFS.

What is a green shoe option in an OFS?

A green shoe option in an OFS enables the seller to sell additional shares if investor demand is stronger than expected -- a situation known as oversubscription.

Simply put, the promoter sets aside some extra shares ready in case the initial offer gets fully subscribed.

This helps meet excess demand without launching another sale immediately. The extra shares are sold only if the seller chooses to exercise this option.

What distinguishes an IPO from an OFS?

In an initial public offer, a company issues fresh shares to raise capital from the market. This money is used for corporate purposes like debt repayment.

In an OFS, existing shareholders -- like a government -- sell their shares after the company is already listed and they receive the sale proceeds. Through this route, the proceeds are not received by the company itself.

Cochin Shipyard shares vs Nifty 50

At the current level, Cochin Shipyard shares are down 7.0 per cent so far this year, in line with the Nifty 50's 6.6 per cent decline.

The Miniratna PSU stock has fallen 26.5 per cent in a year, worse than a 4.1 per cent decline in the benchmark blue-chip index.