It is yet another major IPO launch news. This time state-owned warship builder, Mazagon Dock is looking at IPO route and may float their offer sometime in October.
The government has expressed its plans to divest 10 to 15 percent of its stakes in the company via 2.3-3.3 crores equity share sale. According to news channels, Mazagon Dock Shipbuilders IPO is aiming to raise between 700 to 800 crores funds.
Mazagon Dock Shipbuilders Ltd. (MoD) is a public sector (PSU) warship building company under the Department of Defence. The company mainly offers shipbuilding and repairing services to Naval vessels, warships and submarines. It has two main divisions – shipbuilding and heavy engineering.
Established in 1960, the company has produced over 795 vessels, including 25 warships and three submarines. MoD has extensive expertise in developing advanced destroyers, missile boats, and repairing warships, including submarines. Currently, four P-15 destroyers and four P-17A frigates are being built by MoD along with five Scorpene-class submarines for which the company is working under transfer of technology agreement with Naval Group.
Apart from working for the Defence Department, MoD also offers services to various commercial clients including cargo ships, supply vessels, multipurpose support vessels, and more.
The IPO offer was scheduled for launch in 2019, but the plan got shelved amid unenthusiastic response from investors.
Key points to note about Mazagon Dock Shipbuilders IPO
- The IPO will contain an offer for sale of 22,410,000 equity shares
- It is planned for some time in October, but the final date isn’t yet announced
- The IPOs will launch at face value of Rs 10
- Among investors, 35 percent will allocate to retail investors
- Mazagon Dock Shipbuilders IPO will list with both BSE and NSE
- In 2020 the company registered a profit of Rs 415 crore on a revenue of Rs 5,566 crores
While defence stocks are gaining attention, investors may find MoD shares attractive.
If you want to apply for Mazagon Dock IPO, you can do it from Angel Broking client console.