Indian Government to Sell 5% Stake in Cochin Shipyard at Discounted Price

The Indian government plans to sell a 5% stake in Cochin Shipyard, a shipbuilding company, according to an exchange filing on Tuesday. The floor price for the sale is set at 1,540 rupees, which is an 8% discount from the stock’s closing price on Tuesday. This stake is valued at 20.26 billion rupees ($241.2 million). The offer will initially consist of 2.5% of the company’s shares, with the option to sell an additional 2.5% stake.

In the current fiscal year, the government has raised 31.61 billion rupees through divestments, including selling its stake in General Insurance Corporation of India. Despite this, the government has not set a specific target for divestment for the year, which is a departure from its usual practice. The sale of Cochin Shipyard’s stake will begin on Oct. 16 for non-retail investors and on Oct. 17 for retail investors.

As of June 30, the Indian government held a 72.86% stake in Cochin Shipyard, according to exchange data. Cochin Shipyard specializes in building various types of ships, including bulk carriers, passenger vessels, and aircraft carriers. The company’s stake sale is part of the government’s ongoing divestment efforts to raise funds.

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