The Finance Ministry is planning to divest up to 3 per cent in Cochin Shipyard via an offer for sale (OFS) in the third quarter of financial year 2024, a government official said. Government aims to rake in Rs 500-600 crore from the OFS in PSU, it added.
“Government is planning an OFS for Cochin Shipyard. Though the exact rollout timeline has not been decided, it is likely to be in Q3. DIPAM (the Department of Investment and Public Asset Management) is looking to offload 2-3 percent this year in the PSU,” the official said. The government’s stake will drop to 69.86 per cent from 72.86 per cent in the shipbuilding company once the deal goes through.
Founded in 1972, Kerala-based company operates a shipyard that provides shipbuilding and ships/offshore structures repair services.
The Ministry of ports, shipping and waterways recently upgraded the shipbuilding company to ‘Schedule A’ Central Public Sector Enterprise (CPSE), from ‘Schedule B’, allowing it to effectively manage its seven units.
The company will be reporting its quarter ending June results today, August 11.
The company’s profit plunged almost 86 per cent to Rs 39.3 crore against Rs 275 crore in the fourth quarter of financial year 2022. Its revenue from operations fell by 51 per cent to Rs 600.1 cr against Rs 1,212.5 cr in the same quarter previous fiscal.
The stock of Cochin Shipyard is trading at Rs 640 apiece, down nearly 3 per cent, at 12:27 pm.