Cochin Shipyard offer for sale gets enthusiastic response from retail investors: DIPAM Secy
Oct 18, 2024
New Delhi [India], October 18 : The two-day Offer for Sale (OFS) by Cochin Shipyard Limited (CSL) to divest 5 per cent stake saw strong interest from retail investors, according to an official statement by the Department of Investment and Public Asset Management (DIPAM).
The government has divested 2.5 per cent of its equity stake in CSL, with an additional 2.5 per cent available as a green shoe option.
"The second day of Cochin Shipyard Limited OFS closed with good interest from retail investors. We thank all investors for their participation" said the Secretary, Department of Investment and Public Asset Management in a social media post on 'X'.
The OFS opened on October 16, for non-retail investors, and received an enthusiastic response. The issue was subscribed 2.16 times the base size in the non-retail category, indicating strong demand from institutional buyers. The government also decided to exercise the green shoe option, allowing it to offer the additional 2.5 per cent stake in CSL.
On Thursday, October 17, the OFS opened for retail investors and employees of CSL. Retail investors showed significant interest in the offering, reflecting confidence in the company's prospects.
The Offer for Sale in CSL was part of the government's ongoing divestment program, aimed at reducing its stake in public sector companies and raising funds.
The strong demand for the OFS, both from non-retail and retail investors, highlights the positive outlook for CSL, which is one of India's leading shipbuilding companies and plays a key role in the defense and commercial shipbuilding sectors.
This sale is seen as a key step in the government's efforts to meet its divestment targets while giving investors an opportunity to participate in the growth story of CSL.
