Government To Sell Up To 5% Stake In Cochin Shipyard Via Offer-For-Sale
The offer will open on Oct.16 and close on Oct.17, with the floor price set at Rs 1,540 per share, according to an exchange filing on Tuesday.
The Ministry of Ports, Shipping and Waterways has announced plans to sell up to a 5% stake in Cochin Shipyard through an offer-for-sale. The offer will open on Oct. 16 and close on Oct. 17, with the floor price set at Rs 1,540 per share, according to an exchange filing on Tuesday.
As the promoter of Cochin Shipyard, the government will sell up to 65.77 lakh equity shares of a face value of Rs 5 each for a base offer of 2.5%, Cochin Shipyard said in its exchange filing.
The OFS will include an oversubscription option of additional 2.5%. Additionally, 25,000 equity shares or 0.19% of the offer shares of the company, 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 500,000.
The offer will be undertaken exclusively through the sellers's brokers named below on a separate window provided by the stock exchange for this purpose.
Brokers on behalf of the seller include Axis Capital Ltd., DAM Capital Advisors Ltd. and BOB Capital Markets Ltd. DAM Capital Advisors Ltd. will also act as a settlement broker.
Shares of Cochin Shipyard closed 2.99% to Rs 1,673 apiece, compared to a 0.28% decline in the benchmark NSE Nifty 50.
It has risen 224.60% in the last 12 months and 146.97% on a year-to-date basis. The total traded volume so far in the day stood at 0.40 times its 30-day average. The relative strength index was at 41.55.
Three out of the five analysts tracking the company have a 'buy' rating on the stock, one recommends a 'hold' and one suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 35.8%.
