Investors Flock to Cochin Shipyard Sale: A Rs 1,980 Crore Surge

The government's share sale of Cochin Shipyard attracted strong interest from institutional investors, garnering bids over Rs 1,900 crore. The sale involves a 5% equity divestment, with 2.5% being the initial offer and an additional 2.5% through a green shoe option. The offering to retail investors starts Thursday.

The government's recent stake sale in Cochin Shipyard has sparked heightened interest among institutional investors, racking up bids totaling over Rs 1,900 crore on Wednesday. The demand was such that the portion earmarked for institutional buyers was oversubscribed significantly.

Initially offering 59.19 lakh shares, institutional buyers exceeded expectations, bidding for 1.28 crore at an indicative price of Rs 1,550.13 per share. As part of a two-day offering, the government is shedding 2.5% equity, with the option to extend this to 5% if the green shoe option is exercised.

The result could net the exchequer an impressive Rs 1,980 crore. Retail investors are set to join the fray on Thursday, with a tenth of the offer reserved for retail and additional shares for employees. Currently, the government retains a 72.86% stake in Cochin Shipyard, whose shares closed 4.99% lower on BSE at Rs 1,588.50.

(With inputs from agencies.)