Cochin Shipyard slips ~5% as OFS opens at a 5% discount

16 Oct 2024 , 12:35 PM

Cochin Shipyard shares slumped more than 4% on October 16 as the government launched an offer-for-sale to sell a 5% stake in the PSU corporation. The government aims to reduce its ownership through the OFS at a floor price of ₹1,540 per share, representing a 7% decrease from the last closing level.

By 10.30 A.M., About 1.76% of non-retail investors had subscribed to the OFS, which includes a base offer of a 2.5% stake or 66 lakh shares, as well as a green shoe option of another 2.5%. Retail investors will be able to participate in the issue on October 17. The indicative price for the non-retail category will be released separately.

According to Cochin Shipyard’s most recent shareholding data, the government presently controls 72.86% of the corporation.

The shipbuilder reported a 77% increase in net profit to ₹174.2 Crore in the first quarter of FY25, compared to ₹98.6 Crore in the same time previous year. Prior to that, the PSU firm’s net profit fell by 33% from ₹258.8 Crore in the March quarter.

As of September 30, the company has an order book of ₹22,500 Crore and an order pipeline for shipbuilding projects of ₹7,820 Crore.

At around 12.15 PM, Cochin Shipyard was trading 4.30% lower at ₹1,600 per piece, against the previous close of ₹1,671.95 on NSE. The counter touched an intraday high and low of ₹1,648.90, and ₹1,598, respectively.

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