Government of India will sell up to 5 percent stake in Cochin Shipyard. The government gave this information on Tuesday. It said that the stake will be sold through OFS from October 16 at a minimum price of Rs 1,540 per share. According to PTI news, Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management, said that the offer for sale in Cochin Shipyard Limited (CSL) will open for non-retail investors from Wednesday.
Retail investors can place bids on October 17
According to the news, retail investors and CSL employees can bid in this OFS on Thursday, October 17. The government will sell 2.5 per cent equity or 65.77 lakh shares, with an option to sell an additional 2.5 per cent. At the floor price of Rs 1,540 per share, the sale of 5 per cent stake will fetch around Rs 2,000 crore to the exchequer. The floor price is about 8 percent lower than Tuesday's closing price of Rs 1,672.
Government has 72.86 percent stake
Shares of Cochin Shipyard closed at Rs 1,672 per share, up 3.03 per cent on the BSE. The government currently holds 72.86 percent stake in Cochin Shipyard. Cochin Shipyard Limited on Wednesday placed an order worth Rs 850 crore to defense sector Navratna PSU Bharat Electronics Limited for the supply of indigenous multi-function radar in X band. The fully indigenous radar, designed by DRDO and manufactured by Bharat Electronics Limited (BEL), is capable of detecting, acquiring and tracking aerial targets to provide protection to naval ships.
Earned excellent profit in the March 2024 quarter
State-owned Cochin Shipyard Limited had reported a multi-fold rise in its consolidated net profit for the March 2024 quarter to Rs 258.88 crore. The company had earned a profit of Rs 39.33 crore in the same period a year ago. The company's total income had increased to Rs 1,366.16 crore in January-March FY23 from Rs 671.32 crore. The company's board then also approved a final dividend of Rs 2.25 per share for FY 2024. Cochin Shipyard is one of the leading shipbuilding and repair yards in India. It also has a special area for offshore construction and future expansion.
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