The two-day offer for sale (OFS) by the government to sell 5 per cent stake in defence PSU Cochin Shipyard Ltd will begin on October 16, with only non-retail investor allowed to bid today. The floor price for the OFS was set at Rs 1,540 per share, a 7.89 per cent discount to Tuesday's closing price of Rs 1,672 apiece.
The OFS would include a base offer of 2.5 per cent stake or 65.77 lakh shares, and a green shoe option of another 2.5 per cent stake. The OFS has come at a time when Cochin Shipyard shares have plunged 43.83 per cent from their 52-week high of Rs 2,977.10 on July 8.
Cochin Shipyard saw muted order inflows in Q2FY25. Kotak Institutional Equities is expecting Cochin Shipyard to record 10 per cent top line growth for the September quarter, driven by the execution of ASW Corvette, NGMV projects, with Ebitda margins seen falling sequentially due to lower contribution from IAC ship repair order.
Cochin Shipyard OFS President of India, acting through and represented by the Ministry of Ports, Shipping and Waterways, Government of India, is the promoter of Cochin Shipyard Ltd.
The government proposes to sell up to 65,77,020 shares, representing 2.50 per cent of the total paid up equity share capital today. Retail investors Cochin Shipyard employees and for non-retail investors who decide to carry forward their un-allotted bids from T day, can bid on Thursday.
"In the event that the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will collectively, hereinafter be referred to as offer shares while in the event that such oversubscription option is not exercised, the equity shares forming part of the base offer Size will be referred to as offer shares," Cochin Shipyard said.
Additionally, 25,000 equity shares equivalent to 0.19 per cent of the offer shares may be offered to eligible employees of the company, in accordance with the terms and conditions provided in the OFS Guidelines, subject to approval from the competent authority.
The eligible employees may apply for equity shares, amounting up to Rs 5,00,000.
"The Offer shall take place over two trading days on a separate window of the Stock Exchanges on October 16, 2024 ("T" day) and October 17, 2024 ("T+1" day), commencing from 9:15 a.m. and shall close on the same date at 3:30 p.m. (Indian Standard Time) on both days," Cochin Shipyard said.
Only non-retail investors would be allowed to place their bids on T day, i.e., October 16, 2024. While placing their bids, non-retail investors may indicate their willingness to carry forward their un-allotted bids to T+1 day for allocation to them in the unsubscribed portion of retail category.
The offer would take place during trading hours on a separate window of the Stock Exchanges on T day, i.e., October 16, 2024 commencing at 9:15 a.m. and would close at 3:30 p.m. IST on the same date.
Those non-retail investors who have placed their bids on T day and have chosen to carry forward their un-allotted bids to T+1 day, shall be allowed to carry forward and also revise their bids on T+1 day, as per the OFS Guidelines.