Mazagon Dock shares slide 6% as govt opens OFS for non-retail investors
The floor price for the offer-for-sale was set at ₹2,525 per share, a discount of 7.7 per cent to Thursday's closing price
 "Mazagon Dock shares slide 6% as govt opens OFS for non-retail investors")
Shares of Mazagon Dock Shipbuilders slid over 6 per cent on Friday after the government announced a 4.83 per cent stake sale in state-run defence company via an offer for sale.
The Government of India will divest up to 11.39 million equity shares, equivalent to 2.83 per cent of its stake, on April 4 for non-retail investors and on April 7 for retail investors and employees, the company said in a notification to the stock exchanges. The state-run company has the option to additionally sell 8.06 million shares or 2 per cent stake by exercising the oversubscription option, thereby taking the overall stake sale to 4.83 per cent.
The government owned an 84.83 per cent stake in the company at the end of the December quarter, according to BSE data.
Additionally, 50,000 equity shares or 0.26 per cent stake may be offered to eligible employees in accordance with the terms and conditions provided in the OFS suidelines, subject to approval from the competent authority, the defence company said. The floor price for the offer-for-sale was set at ₹2,525 per share, a discount of 7.7 per cent to Thursday's closing price.
Mazagon Dock’s stock fell as much as 6.44 per cent during the day to ₹2,561.2 per share, the biggest intraday loss since February 18 this year. The stock pared some losses to trade 5.9 per cent lower at ₹2,576 apiece, compared to a 0.84 per cent advance in Nifty 50 as of 9:46 AM.
Shares of the company snapped two days of gains on Friday. The stock has risen 15 per cent this year, compared to a 2.5 per cent fall in the benchmark Nifty 50. The counter of the defence manufacturer has risen by nearly 34 per cent since its recent lows of ₹1,918 per share in February this year. Mazagon Dock has a total market capitalisation of ₹1.03 trillion.
In the last financial year, Mazagon Dock emerged as the standout performer, surging by an impressive 189.2 per cent compared to the Nifty50's 5.7 per cent gain.
The Company is principally engaged in building and repairing ships, submarines, various types of vessels and related engineering products for its customers.
Mazagon Dock reported a 30 per cent rise in its consolidated net profit at ₹768.22 crore for the third quarter (Q3) of the financial year 2024-25 (FY25), up from ₹591.54 crore reported during the same period last year. The company’s strong performance was driven by revenue growth and improved operational efficiency.