Cochin Shipyard shares fall 4%; OFS opens for non-retail investors today

Shares of Cochin Shipyard Ltd. are trading with losses of 4% on Tuesday, July 7, after the government announced an Offer for Sale (OFS) to divest up to 5.04% of its stake in the state-run shipbuilder.

The Centre will initially sell a 2.52% stake, equivalent to 66.29 lakh shares, with an option to sell an additional 2.52% through the greenshoe option in case of strong demand.

The OFS opens for non-retail investors on Tuesday, while retail investors can bid on Wednesday, July 8.

The floor price has been fixed at ₹1,400 per share, representing a discount of nearly 7% to Monday's closing price of ₹1,508.50.

At the end of the March quarter, the government held a 67.91% stake in Cochin Shipyard.

How retail investors can apply

Retail investors can place bids through the OFS section available on their trading platform or broker's app.

Before placing a bid, investors should review the floor price, bid quantity and other issue details. The bid price must be equal to or higher than the floor price of ₹1,400 per share.

Sufficient funds should be available in the trading account, as the amount will be blocked until the allotment process is completed.

Successful applicants will receive shares in their demat accounts on the settlement date, while unsuccessful bidders will have the blocked funds released.

For OFS purposes, retail investors are those who bid for shares worth up to ₹2 lakh.

Cochin Shipyard shares ended Monday's session 1.02% lower at ₹1,508.50. The stock has declined 7% so far this year.