Cochin Shipyard OFS Attracts Robust Retail and Institutional Interest

Cochin Shipyard Limited's divestment through a two-day Offer for Sale saw substantial interest from both retail and institutional investors. The government divested 2.5% of its stake, with an additional 2.5% as a green shoe option. The OFS aligns with ongoing efforts to meet divestment targets and fund raising.

The two-day Offer for Sale (OFS) by Cochin Shipyard Limited (CSL) garnered significant interest from retail investors, as announced by the Department of Investment and Public Asset Management (DIPAM). The government divested 2.5% of its equity in CSL, with an optional additional 2.5% available as a green shoe option.

The Secretary of DIPAM, in a post on social media platform 'X', expressed gratitude towards investors, noting strong participation on the second day of CSL's OFS. The OFS opened on October 16 for non-retail investors and saw a response rate of 2.16 times the base size, indicating solid demand from institutional buyers. Subsequently, the government decided to exercise the green shoe option, releasing more of its stake.

On October 17, the OFS became available to retail investors and CSL employees, who demonstrated substantial interest, indicating confidence in the company's future. This sale is a part of the government's broader divestment strategy, aiming to reduce holdings in public sector entities and secure funds. The positive reception from both non-retail and retail investors underscores a favorable outlook for CSL, a leader in India's shipbuilding industry, contributing significantly to defense and commercial sectors.

(With inputs from agencies.)