An Indian government sell-off of Cochin Shipyard stock has dragged its share price down.
The state is offloading up to 5% of the bulker and offshore vessel builder through a public offer on Wednesday and Thursday.
The price is INR 1,540 per share, valuing the stake at INR 20.3bn ($242m).
The stock has been offered at an 8% discount to the closing price on Tuesday.
As a result, the trading price dropped as much as 4.9% on Wednesday to INR 1,590 on the Bombay Stock Exchange.
The government owns 72.86% of Cochin Shipyard.
The yard’s market capitalisation is INR 419bn.
The move is seen as a strategic divestment to boost trading liquidity and take advantage of the big state holding.
The government is offering 2.5% initially, or 6.6m shares, with the option to raise this to 5% depending on demand. Employees can subscribe for 0.19%.
Cochin Shipyard’s shares have fallen 43% from their 52-week high of INR 2,977 in July.
Bulker orders sealed
Kotak Institutional Equities said it expects 10% revenue growth for the company in the quarter ending 30 September.
In July, private Norwegian owner Wilson firmed up a deal for eight more bulkers at the shipyard.
The mini-bulker specialist declared options for 6,300-dwt vessels to be delivered by September 2028.
Cochin Shipyard said the ships are worth INR 11bn ($131.8m).
Wilson ordered six firm 3,800-dwt energy-efficient bulkers at the yard a year ago.
The orderbook of 17 vessels also includes two feeder container ships for Samskip, six multipurpose ships for HS Schiffahrts, two commissioning service operation vessels for Pelagic Partners and two service operation vessels for North Star in the UK.
