Mazagon Dock Shipbuilders IPO: Opens Tomorrow; Find Details about the Public Offer
Mumbai-headquartered Mazagon Dock Shipbuilders Initial Public Offering (IPO) is set to open for subscription, on Tuesday, September 29, 2020.
Mumbai-headquartered Mazagon Dock Shipbuilders Initial Public Offering (IPO) is set to open for subscription, on Tuesday, September 29, 2020. The IPO price has been fixed at Rs 135-145 per share. Bidding for subscription will close on October 1, 2020.
The company seeks to raise Rs 444 crore by offloading 15.17 per cent stakes of the government, who at present owns 100 per cent ownership in it. The company will not receive any proceeds from the offer and all such proceeds will go to the government helping it with constrained finances.
Investors can subscribe to the initial public offering or a minimum of 103 equity shares and in the multiples of 103 thereafter. The IPO consists of an entire offer for sale of 3,05,99,017 equity shares by the Ministry of Defence, Government of India. The issue includes an employee reservation portion of 3,45,517 equity shares. The total offer will constitute 15.17 per cent of the post issue paid-up equity.
The quota for retail investors in Mazagon Dock Shipbuilders IPO is fixed at 35 per cent of the net offer. QIB quota is fixed at 50 per cent while the NII at 15 per cent.
The shares of Mazagon Dock Shipyards is set to be listed on stock exchanges, BSE & NSE on October 12, 2020. This is the eleventh IPO this year.
The book running lead managers to the issue are Yes Securities (India), Axis Capital, Edelweiss Financial Services, IDFC Securities and JM Financial.
About Mazagon Dock
State-owned Mazagon Dock Shipbuilders Limited, also known as "Ship Builder to the Nation", is one of India's leading Defence public sector undertaking shipyard under the Ministry of Defence. Main activities are the construction of warships and submarines with facilities situated at Mumbai and Nhava (under development). It has the capability to build warships, submarines, merchant ships up to 40,000 DWT since 1979.
The company was conferred the 'Mini-Ratna-I' status in 2006. It is India's only shipyard to have built destroyers and conventional submarines for the Indian Navy.
It is also one of the initial shipyards to manufacture Corvettes in India, the CRISIL report says. The company is building four P-15 B destroyers and four P-17A stealth frigates and undertaking repair and refit of a ship for the MoD for use by the Indian Navy.
The company has a large number of workshops with sophisticated equipment and machines specific to hull fabrication and ship construction work. The Company has qualified manpower to implement CAD/CAM/CIM using the latest ship design software's, operating from a number of work stations having the latest computer hardware to provide, up to date design and production support, commensurate with for the yard's capabilities. The workforce is well trained in various disciplines. Regular training programmes keep the men technologically abreast of the latest techniques of their profession.