The base issue comprises the sale of a 2.5% equity stake representing 65,77,020 shares with a green shoe option of another 2.5%.
The OFS will open for non-retail investors today and for retail investors and employees of the company on Thursday.
The floor price of Cochin Shipyard shares are at a discount of 8% over Tuesday’s closing price of Rs 1,673. The stock on Tuesday ended with gains of Rs 48.60 or 3% on the NSE over Monday’s closing price.
The offer will take place during trading hours through a separate window on Thursday.
Shares of Cochin Shipyard have fallen nearly 80% from their 52 week peak of Rs 2,979.45, they had hit in July this year.Notwithstanding the recent decline, their one-year return still stands at 216% which is a significant outperformance over Nifty whose returns stand at 27%. In this year, so far, they have yielded 146% returns.Cochin shipyard is one of the leading shipbuilding and repair yards in India and has an exclusive area set for offshore construction and future expansion. It is one of India’s top 10 public sector undertakings.
The stock has fallen below its 50-day simple moving average (SMA) of Rs 1,928 while it is still trading above its 200-day SMA of Rs 1,536.
The recent correction in this counter has bought it from the overbought zone. Its momentum indicators RSI and MFI are at 37 and 45 according to Trendlyne data. A number below 30 suggests that the stock is trading in an oversold zone while a number above 70 means it is in the overbought zone.
The stock has remained quite volatile with its 1-year beta hovering above 1.
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