Mazagon Dock makes strong debut

Shares of Mazagon Dock Shipbuilders were trading at Rs 189.65 at 10:25 IST on the BSE, a premium of 30.79% over the initial public offer price of Rs 145.

The stock was listed at Rs 216.25, a premium of 49.14% to the initial public offer (IPO) price. So far the stock hit a high of Rs 216.65 and low of 176.5. On the BSE, 19.02 lakh shares were traded on the counter so far.

The IPO of Mazagon Dock Shipbuilders received bids for 481.64 crore shares as against 3.05 crore shares on offer. The issue was subscribed 157.41 times.

The non-institutional investors category was subscribed 678.88 times. The qualified institutional buyers (QIBs) category was subscribed 89.71 times. The retail individual investors (RIIs) category was subscribed 35.63 times.

The issue opened for bidding on 29 September 2020 and closed on 1 October 2020. The price band for the IPO was set at Rs 135-145 per share.

The IPO consisted of offer for sale of 3.05 crore equity shares by the Government of India (GOI). The company will not receive any proceeds from the IPO.

On a consolidated basis, the company recorded sales of Rs 4,977.65 crore and profit after tax of Rs 477.06 crore in the year ended on 31 March 2020.

Mazagon Dock Shipbuilders, a public sector undertaking under the Ministry of Defence (MoD), is engaged in the construction and repair of warships and submarines for use by the Indian Navy and other vessels for commercial clients. The company was conferred with the 'Mini-ratna-I' status in 2006 by the Department of Public Enterprises.

The business operations of the company are divided into two divisions viz. shipbuilding and submarine and heavy engineering. The shipbuilding division of the company is engaged in building and repair of naval ships. The submarine and heavy engineering division of the company undertakes building, repair and refits of diesel electric submarines.

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