The government dismissed reports suggesting a forthcoming offer for sale of Cochin Shipyard Ltd shares as part of its disinvestment agenda. A Finance Ministry official clarified that there is no stake sale planned for Cochin Shipyard at the moment. Recent media speculations indicated a potential offer for sale of a 6% to 8% stake in the shipyard, with estimates of raising over Rs 16,000 crore based on issue size and pricing.
The government currently holds a 67.91% stake in Cochin Shipyard, while the Life Insurance Corporation of India possesses a 3.34% stake with 87.74 lakh shares. Offer for sale is a common method used by the government to decrease its holdings in listed public sector firms and enhance public shareholding. This denial comes amidst the government’s successful disinvestment collections in the initial quarter of FY27.
Disinvestment proceeds from stake sales in various entities like Coal India, NHPC, NLC India, Central Bank of India, and General Insurance Corporation of India have already amassed nearly Rs 14,000 crore in the ongoing quarter. The total is anticipated to increase further after accounting for pending proceeds. The government’s disinvestment earnings are projected to surpass Rs 15,000 crore in the April-June quarter, reinforcing non-tax capital receipts and supporting the FY27 fiscal deficit target.
The government’s FY27 asset monetisation program aims for receipts of Rs 80,000 crore, including the strategic disinvestment of IDBI Bank and minority stake sales in specific public sector firms. Future dilution in certain state-owned companies, such as Life Insurance Corporation of India, remains a potential option in the medium term. In FY27, the Centre has raised Rs 21,732.23 crore through non-tax capital receipts, with disinvestment contributing Rs 13,389.42 crore, asset monetisation generating Rs 6,366.93 crore, and dividend receipts amounting to Rs 1,975.88 crore.
