Mazagon Dock Shipbuilders is one of the largest public sector undertaking shipyard under the Ministry of Defense and is located in Mumbai. The shipbuilding company is the maker of submarines and warships for the Indian Navy. Mazagon Dock also manufactures passenger ships, ferries, and cargo carriers. On Thursday the company announced its IPO launch on 29 September that is aimed to dilute up to 15 percent stake held by the government in the company.
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Shares to be Issued and Paid-up Share Capital
The company announced that it will be selling 30,599,017 Equity Shares whose face value will be Rs. 10 per share. Through this issue, Mazagon Dock Shipbuilders are hoping to raise around 444 Crore Rupees.
In a statement, the company announced,
“The objects of the offer are to carry out the disinvestment of 30,599,017 equity shares by the selling shareholder constituting 15.17% of our company’s pre-offer paid-up equity share capital.”
The book running lead managers of the issue are Axis Capital, Edelweiss Financial, IDFC Securities, JM Financial, and Yes Securities. Alankit Assignments Limited will be the Registrar of the Initial Public Offering (IPO). The shares will be listed on the National Stock Exchange and the Bombay Stock Exchange.
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Mazagon Dock Shipbuilders Share Price and Date of the shares for the Offering
Mazagon Dock Shipbuilders have decided the price band for the issue at Rs. 135 to Rs. 145 per share. The shares will be only available in lots of 103 shares, and its multiples. Also, the maximum number of shares a single investor can buy is 1339 which equals 13 lots of the offering. This means the minimum investment one has to make for acquiring shares in the shipping company will cost between Rs. 13,905 and Rs. 14935.
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Special offer for employees of Mazagon Dock Employees
Out of the total shares being offered, 3,45,517 equity shares will be reserved exclusively for the employees of the company who will be able to buy the shares at a discounted price. The company is giving its employees a special discount of Rs. 10 per share in case they wish to invest in the shares.
Filling and Listing Dates for the IPO
The option to subscribe to the issue from Mazagon Dock Shipbuilders closes on 1st October and from the next day, the basis of allotment of the shares to the shareholders will begin which is will likely to conclude on the 7th of October. From 8th October refunds will be issued to subscribers that were not allotted any shares in the company. The shareholder will start to receive credit for their share in their Demat accounts from the 9th of October. The listing of the shareholders is will happen on 12th October 2020.
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Delay in the launch of IPO from Mazagon Dock
According to many sources, Mazagon Dock Shipbuilders were supposed to announce an IPO in September 2019. But they decided against doing so after seeing a lack of interest from the investors. They have launched their IPO now when everyone has regained an interest in IPO, and many companies are announcing and successfully raising capital through it. The launch date of Mazagon Dock’s IPO coincides with two more companies. Those companies being UTI asset management company and Likhitha Infrastructures Pvt. Ltd.