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  1. Mazagon Dock Shipbuilders eyes up to Rs 850 crore from IPO

Mazagon Dock Shipbuilders eyes up to Rs 850 crore from IPO

State-run warships and submarine maker Mazagon Dock Shipbuilders is planning to raise around Rs 750 crore to Rs 850 crore through an initial public offering (IPO) in the last week of September.

By: | Mumbai | Published: September 7, 2018 12:56 AM
ipo. stock markets The objects of the offer is to carry out disinvestment plan of the government of India and achieve the benefits of listing the equity shares on the stock exchange.

State-run warships and submarine maker Mazagon Dock Shipbuilders is planning to raise around Rs 750 crore to Rs 850 crore through an initial public offering (IPO) in the last week of September.

The objects of the offer is to carry out disinvestment plan of the government of India and achieve the benefits of listing the equity shares on the stock exchange. However, the Mumbai-headquartered company will not receive any proceeds from the offer for sale. “The IPO will help us get noted and we are open for the competition ahead,” said Captain Rajiv Lath, director (Submarine and Heavy Engineering ) of the company.

According to the draft red herring prospectus, the selling shareholder, held by the President of India, acting through the ministry of defence will sell 2.24 crore shares. The offer shall constitute 10% of the post-offer paid-up equity share capital of the company.

Of the 2.24 crore shares for sale, 1.12 crore equity shares are reserved for Qualified Institutional Buyers (QIB) and 33.61 lakh shares and 78.43 lakh shares are reserved for Non Institutional Investors (NII) and Retail Investors, respectively.

The proceeds from the share sale will pass on to the government. Yes Securities, Axis Capital, Edelweiss Financial Services, IDFC Bank and J M Financial are the book running lead managers to the issue. President of India is the promoter of Mazagon Dock Shipbuilders, acting through the ministry of defence. Mazagon Dock Shipbuilders is conferred with the Mini-ratna I status and is India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy. Since 1960, the company has built 795 vessels including 25 warships.

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