Mazagon Dock Shipbuilders, the premier public sector unit war-shipbuilding yard in India will open the initial public offer (IPO) of its equity shares of face value of ₹10 each on September 29. The issue will remain open for three days. Mazagon Dock produces warships and submarines for the Navy and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial clients. It is the only shipyard to build destroyers and conventional submarines to be used by the Indian Navy.
The size of shipbuilder’s IPO is ₹443.69 crore. The issue is priced at ₹135 to ₹145 per equity share.
Lot size, allotment and probable listing date
Tentative allotment date of Mazagon Dock shares is October 7 and the probable listing date is October 12. The bid size or lot size of Mazagon IPO is 103 equity shares and multiples of 103 shares thereafter.
Here are the key things to know about Mazagon Dock IPO before you invest:
1) The IPO issue of 3,05,99,017 equity shares of Mazagon Dock will open for subscription on Tuesday, September 29 and will close on October 1.
2) 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%.
3) Post issue, the promoter shareholding will fall from 100% to 84.8%.
4) 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, and achieve the benefits of listing the equity shares on the stock exchanges. MDSL will not receive any proceeds from the Offer and all such proceeds will go to the selling shareholder.
5) Registrar to the issue is Alankit Assignments.
6) MDSL is a profitable shipyard with profits continuously in the last three Fiscals. According to a report by HDFC Securities, its total income was ₹42,748.63 million, ₹50,276.29 million, ₹52,046.74 million and ₹55,353.07 million for Fiscals 2017, 2018, 2019 and 2020 respectively.
7) 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.
8) “Further, as of July 31, 2020, its Order Book for shipbuilding and submarines and heavy engineering was ₹540,740 million comprising of three major shipbuilding projects and two submarine projects,” says HDFC Securities report.
