Defence PSU major stock slips 5% as OFS for non-retail category opens today
Cochin Shipyard shares remain in focus amid government offloading stake in the entity.
Cochin Shipyard shares are in focus in Wednesday's session as the centre is reported to offload stake in the defence PSU via the offer for sale (OFS) route. Through, the OFS, as much as 2.5 per cent or 65.77 lakh shares will be issued.
The stock at day's low hit a price of Rs 1,590, a cut of 5 per cent, while at around 10:37 am it traded weak by over 3 per cent.
With a green shoe option, the government may look to sell another 2.5 per cent stake in the company.
The OFS will remain open between October 16-17.
The floor price for the OFS was set at Rs 1,540 per share, a 7.89 per cent discount to Tuesday's closing price of Rs 1,672 apiece.
Initially, the offer for sale will be opened for non-retail investor class, with the subscription opening for retail investor category and employees on Thursday.
As per Bloomberg data, several PSUs trade at extremely high market caps relative to their profits, net worth or assets.
Reportedly, other shipping stocks like Shipping Corporation of India and GE Shipping are also in focus as the Cabinet may clear the Shipping Bill.
Cochin Shipyard Q1 results
The net profit of the company in Q1 rose 76.62 per cent to Rs 174.24 crore in the quarter ended June 2024 as against Rs 98.65 crore during the previous quarter ended June 2023. Sales also recorded an increase of 62.12 per cent to Rs 771.47 crore in the quarter ended June 2024 as against Rs 475.86 crore during the previous quarter ended June 2023.
About Cochin Shipyard
The company is a mid-cap PSU entity engaged in ship-building and repair.
Cochin Shipyard share price
The stock in the last one year has gained 225 per cent. While, in the 1 month it has lost 8 per cent.
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