Indian government to sell up to 5% stake in Cochin Shipyard

Cochin Shipyard

15/10/2024 14:50

Oct 15 (Reuters) - The Indian government will offload a
stake of about 5% in shipbuilder Cochin Shipyard  COCH.NS , an
exchange filing showed on Tuesday.
    The floor price for the sale is 1,540 rupees, an 8% discount
to the stock's Tuesday close, the filing showed. At this price,
the stake is valued at 20.26 billion rupees ($241.2 million).
    The base size of the offer will be 2.5%, amounting to about
6.6 million shares, with an option to sell an additional 2.5%
stake.
    The government has raised 31.61 billion rupees through
divestments in the ongoing fiscal year, including 23.46 billion
rupees from selling its stake in General Insurance Corporation
of India  GENA.NS , according to its website.
    It has, however, not set a target for divestment for the
year, a departure from its usual practice.
    The sale of Cochin Shipyard's stake will open on Oct. 16 for
non-retail investors and on Oct. 17 for retail investors.
    The Indian government held 72.86% stake in Cochin Shipyard
as of June 30, according to exchange data.
    Cochin Shipyard makes ships including bulk carriers,
passenger vessels and aircraft carriers, according to its
website.

($1 = 84.0120 Indian rupees)

 (Reporting by Varun Hebbalalu in Bengaluru; Editing by Varun H
K)
 ((varunvyas.hebbalalu@thomsonreuters.com;))