Shares of Cochin Shipyard Ltd. fell more than 3 per cent on Wednesday as the government's two-day Offer for Sale entered its final session and opened for retail investors and employees. The stock was trading at Rs 1,404.50 apiece at 10.06 am after falling to an intraday low of Rs 1,401.50, down as much as 3.06 per cent. The decline was sharper than the 0.60 per cent fall recorded by the NSE Nifty 50 Index.

The Offer for Sale opened for non-retail and institutional investors on July 7 before becoming available to retail investors and employees on July 8. Through the transaction, the government is selling more than 1.32 crore shares, representing up to a 5.04 per cent stake in the shipbuilding company. The offer consists of a base sale of 2.52 per cent equity and an additional 2.52 per cent green-shoe option that can be exercised in case of oversubscription.

At the floor price of Rs 1,400 per share, the full 5.04 per cent stake sale is expected to raise around Rs 1,800 crore for the government. The Centre currently holds a 67.91 per cent stake in Cochin Shipyard. The non-retail portion of the offer was fully subscribed on the opening day, while retail investors were allowed to submit bids during Wednesday's trading session.

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The transaction forms part of the government's wider disinvestment and asset monetisation programme. During the current financial year, the Centre has already sold stakes through Offers for Sale in six public sector entities, including Central Bank of India, Coal India, NHPC, NLC India, General Insurance Corporation of India and Indian Railway Finance Corporation. These transactions have collectively generated Rs 18,561 crore.

For the full financial year, the government has budgeted to raise Rs 80,000 crore through public sector disinvestment and asset monetisation. Disinvestment receipts are expected to cross Rs 15,000 crore as pending proceeds are accounted for, strengthening non-tax capital receipts and supporting the Centre's fiscal deficit target for FY27. Higher proceeds could also provide additional fiscal support as subsidy requirements for fertilisers and petroleum products are expected to increase.

Cochin Shipyard shares have declined 30.50 per cent over the past 12 months and 13.25 per cent since the beginning of the year. Trading volume during Wednesday's session stood at 1.42 times the 30-day average, while the relative strength index was at 51.85. Of the five analysts tracking the company, three have a buy rating, one recommends holding the stock and one has a sell rating, with the average 12-month target of Rs 1,455.75 implying a potential upside of 3.1 per cent.

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