New Delhi: The Centre on Monday dismissed reports that it was preparing to sell a stake in Cochin Shipyard Ltd, stating that no disinvestment in the state-run shipbuilder is currently under consideration, NDTV reported.
The clarification followed media reports suggesting that the government was exploring an offer for sale (OFS) of 6% to 8% of its holding in the defence public sector undertaking as part of its broader disinvestment programme. The proposed transaction was estimated to potentially raise more than Rs 16,000 crore, depending on the final issue size and pricing.
The reports had indicated that the government was considering offering shares at a discount to the prevailing market price to attract investors, although neither the issue size nor the floor price had been finalised. According to the latest shareholding data, the President of India holds a 67.91% stake in Cochin Shipyard, while Life Insurance Corporation of India owns 3.34%.
Sources cited in the reports had suggested that any decision on a stake sale would depend on market conditions and could be taken over the next three to six months. However, the government has now ruled out any immediate plan for dilution of its holding.
The denial comes amid a strong start to the Centre's disinvestment programme in FY27. Stake sales in Coal India, NHPC, NLC India, Central Bank of India and General Insurance Corporation of India have helped mobilise nearly Rs 14,000 crore during the first quarter.
Government receipts from disinvestment are expected to cross Rs 15,000 crore in the April-June period, contributing to non-tax capital receipts and supporting fiscal consolidation efforts. The FY27 asset monetisation programme targets Rs 80,000 crore in receipts, including the strategic disinvestment of IDBI Bank and stake sales in selected public sector enterprises.