Cochin Shipyard OFS Oversubscribed: Govt to Exercise Green Shoe Option

New Delhi, Oct 16 (PTI) The government's 5 per cent share sale in Cochin Shipyard received bids worth over Rs 1,900 crore from institutional investors on Wednesday.

Institutional investors over-subscribed the portion of shares reserved for them. As against 59.19 lakh shares offered, institutional buyers on Wednesday bid for 1.28 crore shares at an indicative price of Rs 1,550.13 apiece.

In the two-day OFS, the government is divesting 2.5 per cent equity or 65.77 lakh shares with an option to sell an additional 2.5 per cent at a floor price of Rs 1,540 a share.

The government has decided to exercise the green shoe option.

Retail buyers will get to bid for the share sale on Thursday.

At the indicative price, the share sale would fetch over Rs 1,980 crore to the exchequer.

"We wish to exercise the oversubscription option to the extent of 6,577,020 equity shares (representing 2.50 per cent of the total paid-up equity share capital of the company) in addition to 6,577,020 equity shares of the company, (representing 2.50 per cent of the total paid-up equity share capital of the company) forming part of the base offer size," Cochin Shipyard said in a regulatory filing.

Accordingly, the total Offer Size will be up to 13,154,040 equity shares (representing 5.00 per cent of the total paid-up equity share capital of the company) of which 1,315,404, i.e. 10 per cent of the offer, would be available for the Retail Category. Additionally, 25,000 equity shares will also be offered to the employees on October 17, 2024, it added.

The government currently holds 72.86 per cent of Cochin Shipyard.

Shares of Cochin Shipyard closed at Rs 1,588.50, down 4.99 per cent over the previous close on BSE.