Mazagon Dock Shipbuilders, the premier public sector unit war-shipbuilding yard in India will open the initial public offer (IPO) on Sept 29
About Mazagon DS
State-owned Mazagon Dock is a defence public sector undertaking shipyard under the Department of Defence Production, Ministry of Defence, with a maximum shipbuilding and submarine capacity of 40,000 DWT.
It is engaged in the construction and repair of warships and submarines for the government for use by the Indian Navy and other vessels for commercial clients.
Also the company was conferred the ‘Mini-Ratna-I’ status in 2006.
It is located on the west coast of India, on the sea route connecting Europe, West Asia and the Pacific Rim, a busy international maritime route.
Issue price and Size of IPO
The issue price is fixed at ₹135 to ₹145 per equity share.
The government of India would be selling 3,05,99,017 shares by raising Rs 413 crore at the lower price band and nearly Rs 444 crore at the upper price band.
Subscription Date
IPO will open for subscription on Tuesday, September 29 and will close on October 1.
Listing Dates
Tentative allotment date of Mazagon Dock shares is October 7 and the probable listing date is October 12.
Lot Size
Investors can subscribe to the initial public offering (IPO) by betting for a lot of 103 shares or in multiples thereof.
Retail investors can bid for a maximum of 14 lots at the lower band limit.
Allotment Reservation
The quota for retail investors in Mazagon Dock Shipbuilders IPO is fixed at 35% of the net offer. QIB quota is 50% while the Non-institutional investors at 15%.
There is an employee reservation of up to 3,45,517 shares.
Promoters Holdings
The government, which has 100 per cent ownership of the company, will offload 15.17 per cent after the issue the promoter shareholding will fall from 100% to 84.8%.
Lead Managers of the issue
The book running lead managers to the issue are as follow:
- Yes Securities (India)
- Axis Capital Edelweiss Financial Services
- IDFC Securities
- JM Financial
Past Performance
MDSL is a profitable shipyard with profits continuously in the last three Fiscals.
The defence shipyard company’s profit for the year was ₹5,982.58 million, ₹4,961.73 million, ₹5,324.74 million and ₹4,770.59 million for Fiscals 2017, 2018, 2019 and 2020 respectively.
It has posted a 7.9 percent year on year growth for FY20 which is 3.2 percent higher than FY19
It also received the order for shipbuilding, submarines and heavy engineering on 31st July, 2020 whose worth is not less than ₹540,740 million
Objective behind the IPO
The objective of the IPO is to carry out the disinvestment of equity shares by the selling shareholder constituting 15.17% of MDSL’s pre-offer paid up equity share capital
Also Read:
Reliance Retail receives Rs 7,500 cr from Silver Lake for a 1.75% stake
UTI Asset Management Company to launch it’s IPO on 29th Sept.
Hexaware Technologies to offer Rs 475 per share for delisting
