The Finance Ministry is likely to offload a stake of up to 3 percent in Cochin Shipyard this fiscal year, likely in the October-December quarter, said a government official, adding that the divestment would be through the Offer for Sale (OFS) route.
“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 told Moneycontrol.
The government aims to get Rs 500-600 crore from the OFS in the PSU, he added.
As of June 2023, the government held a 72.86 percent stake in the company.
The state-owned shipbuilder was recently upgraded as a ‘Schedule A’ Central Public Sector Enterprise (CPSE), from ‘Schedule B’, allowing it to effectively manage its seven units. The upgrade was notified by the Ministry of ports, shipping and waterways.
All CPSEs are categorised into four schedules, A, B, C and D, which has implications for their organisational structure and the salary of board-level incumbents, among others.
In a statement on August 1, CSL said that its upgrade to ‘Schedule A’ signified recognition of its strong financial performance, operational efficiency and contribution to national security.
