Cochin Shipyard OFS oversubscribed 3.52x; govt to exercise full green shoe option

The Offer for Sale (OFS) in Cochin Shipyard Ltd (CSL) received an overwhelming response from investors on the first day on Tuesday (July 7), with the issue getting oversubscribed 3.52 times, according to the Secretary, Department of Investment and Public Asset Management (DIPAM).

Following the strong investor response, the government has decided to exercise the entire green shoe option under the OFS. The OFS will open for retail investors and employees on Wednesday, July 8, 2026.

The indicative price for the bids is ₹1,401.85/share, as against the floor price of ₹1,400/share. The 5.04% share sale at the set floor price is expected to fetch about ₹ 1,800 crore for the exchequer.

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Through the two-day Offer-for-Sale, the government is selling over 1.32 crore shares, or up to a 5.04% stake in shipbuilding company CSL, which includes a base offer of 2.52% of equity and an additional 2.52% as the green-shoe option in case of oversubscription.

So far in the current fiscal, the government has sold stake via OFS in six public sector entities, Central Bank of India, Coal India, NHPC, NLC India, GIC and IRFC, garnering a cumulative ₹18,561 crore. The government currently holds a 67.91% stake in Cochin Shipyard Ltd.

For the full fiscal, the government has budgeted to raise ₹80,000 crore via PSU disinvestment and asset monetisation.

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Shares of Cochin Shipyard Ltd ended at ₹1,448.30, down by ₹56.45, or 3.75%, on the BSE.