An exchange filing on Tuesday revealed that the Indian government would sell a stake in Cochin Shipyard of approximately 5%.

The filing revealed that the floor price of the sale was 1,540 rupees. This represents an 8% discount from the Tuesday closing price. The stake is worth $241.2 million at this price.

The offer size will start at 2.5% and amount to approximately 6.6 million shares. There is an option to sell a further 2.5% stake.

According to the government's website, it has raised 31,61 billion rupees in the current fiscal year through divestments, including 23,46 billion rupees by selling its stake in General Insurance Corporation of India.

The company has not, however, set a divestment target for the year. This is a departure from their usual practice.

Retail investors will be able to purchase Cochin Shipyard stakes on October 16 and non-retail investors on October 17.

According to data from the stock exchange, as of June 30th, the Indian government owned 72.86% of Cochin Shipyard.

According to its website, Cochin Shipyard produces ships such as bulk carriers, passenger boats and aircraft carriers. ($1 = 84.40120 Indian Rupees) (Reporting and editing by Varun Hebbalalu, Bengaluru)

(source: Reuters)