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Mazagon Dock Shipbuilders lists at 49% premium over issue price

The Rs 440-crore IPO saw strong demand and was subscribed 157 times

Markets | Mazagon Dock Shipbuilders | Buzzing stocks

SI Reporter  |  New Delhi 

markets, stock market, sensex, nifty, shares, growth, profit, economy, gain

Shares of listed at Rs 216.25, a 49 per cent premium against the issue price of Rs 145 per share on the BSE on Monday. Till 10:26 AM, the stock had hit a high and low of Rs 216.65 and Rs 176.50, respectively. As many as 2.11 crore equity shares have changed hands on the counter on the BSE and NSE combined, so far.

The Rs 440-crore initial public offering (IPO) saw strong demand and was subscribed 157 times against the shares on offer, making it one of the most-subscribed public offering of a state-owned company.

The offering generated bids worth Rs 70,000 crore, with the high networth individual (HNI) portion of the issue getting 679 times subscription. The retail portion was subscribed nearly 4 times, while the institutional investor category was over-bid by 90 times.

The objectives of the IPO was to carry out the disinvestment of 30,599,017 equity shares constituting 15.17 per cent of company’s pre-offer paid up equity share capital and to achieve the benefits of listing on the stock exchanges.

In an IPO note, analysts of Geojit Research said that "Mazagon Dock's current order backlog is Rs.540,74 crore, ten times the FY20 sales, which provides a strong visibility. New Defence procurement policy 2020, is expected to accelerate indigenization, which is positive for the domestic defence industry."

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First Published: Mon, October 12 2020. 10:29 IST