Government will sell this much stake in Cochin Shipyard through OFS, price fixed at ₹1,540/share
The Government of India will sell up to 5 percent stake in Cochin Shipyard. The government gave this information. It said that the stake will be sold through OFS from October 16 at a minimum price of Rs 1,540 per share. According to PTI news, Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management, said that the offer for sale in Cochin Shipyard Limited (CSL) will open for non-retail investors from Wednesday.
Retail investors can bid on October 17
According to the news, retail investors and employees of CSL can bid in this OFS on Thursday, October 17. The government will sell 2.5 percent equity or 65.77 lakh shares, with an option to sell an additional 2.5 percent. At a minimum price of Rs 1,540 per share, the sale of 5 percent stake will fetch the government treasury about Rs 2,000 crore. The minimum price is about 8 percent lower than Tuesday’s closing price of Rs 1,672.
The government has 72.86 percent stake
Cochin Shipyard shares closed at Rs 1,672 per share with a gain of 3.03 percent on the BSE. The government currently holds 72.86 percent stake in Cochin Shipyard. Cochin Shipyard Limited on Wednesday placed an order of Rs 850 crore to defense sector Navratna PSU Bharat Electronics Limited for the supply of indigenous multi-function radar in the X band. The fully indigenous radar, designed by DRDO and manufactured by Bharat Electronics Limited (BEL), is capable of detecting, acquiring and tracking aerial targets to provide protection to naval ships.
Earned great profit in March 2024 quarter
State-owned Cochin Shipyard Limited reported a multi-fold increase in its consolidated net profit to Rs 258.88 crore for the March 2024 quarter. The company had earned a profit of Rs 39.33 crore in the same period a year ago. The total income of the company increased from Rs 671.32 crore to Rs 1,366.16 crore in January-March FY 23. The company’s board then also approved a final dividend of Rs 2.25 per share for FY 2024. Cochin Shipyard is one of the leading shipbuilding and repair yards in India. It also has a special area for offshore construction and future expansion.
