Shares of Cochin Shipyard dropped 5% as the government sells its interest.
Cochin Shipyard Share Price: Through an offer for sale, the government plans to sell up to 5% of its Cochin Shipyard interest. The shares are being offered at a floor price of Rs 1,540 apiece, which is 8% less than the closing price. For non-retail investors, the sale begins today; for retail investors, it begins on Thursday.
Defense PSU Cochin Shipyard shares dropped almost 5% to the day’s low of Rs 1,590 on the BSE following the start of a two-day offer for sale (OFS) on Wednesday, during which the government will sell up to 5% of the company. The OFS floor price is Rs 1,540 per share, which is 8% less than the closing price of Rs 1,673 on Tuesday.
On the NSE, the stock finished Tuesday up Rs 48.60, or 3%, from Monday’s closing price.
A 2.5% equity interest, or 65,77,020 shares, will be sold as part of the base issue, with a 2.5% green shoe option.
The OFS will open to non-retail investors; on Thursday, it will open to retail investors and corporate workers.
On Thursday, the offer will be made through a different window during trading hours.
Cochin Shipyard’s stock has dropped by over 80% after reaching a 52-week high of Rs 2,979.45 in July of this year.
Despite the current downturn, their one-year return is still 216%, which is a notable improvement above the Nifty’s 27% return. So far this year, they have produced returns of 146%.
One of India’s top shipbuilding and repair yards, Cochin Shipyard has a dedicated space for offshore construction and future growth. It is among the top ten public sector projects in India.
The stock has dropped below the Rs 1,928 50-day simple moving average (SMA) as itThe stock is currently trading above its 200-day simple moving average (SMA) of Rs 1,536, but it has dropped below its 50-day SMA of Rs 1,928.
This counter was purchased from the overbought zone by the most recent drop. Trendlyne data shows that its momentum indicators, the RSI and MFI, are at 37 and 45, respectively. An oversold zone is indicated by a number below 30, and an overbought zone is indicated by a number beyond 70.
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