Mazagon Dock Shipbuilders IPO – Review, Allotment Status, Subscription, Price, Date & more
Last Updated Date: Nov 18, 2022Mazagon Dock Shipbuilders IPO is filed with SEBI on April 2nd 2018. Lets read the details about Mazagon Shipbuilders IPO Review & its important facts like IPO Size, IPO release date, IPO object, IPO price band, Grey market price, IPO allotment status, IPO subscription, Company’s background etc.
| Face Value | Rs 10 |
| Price Band | Rs 135 to Rs 145 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 103 |
| Listing Date | Oct 12, 2020 |
| Offer for Sale | Rs 443.69 Cr |
| IPO Size | Rs 443.69 Cr |
| Tick Size | NA |
Mazagon Dock Shipbuilders IPO will be listed on 12th Oct 2020, check out the live share price by clicking on the below link.
Also, Check Live Share Price Performance of – UTI AMC & Likhitha Infra here
Summary of Mazagon Dock Shipbuilders IPO
Mazagon Dock Shipbuilders Limited, aptly called “Ship Builder to the Nation”, is the India’s one of the leading Defence Public Sector Undertaking Shipyard under the Ministry of Defence. Main activities are construction of state-of-the-art warships and submarines with facilities situated at Mumbai and Nhava (under development).
As Mazagon Dock Shipbuilders is a PSU, it can be said that the Government of India, through the misnistry of Defence, will be the selling shareholder. The total number of equity shares available under the IPO to the general public is 22,410,000. Apart from this, certain shares would also be a part of the IPO but would be reserved for the eligible employees of the company.
The Promoters of this company are THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF DEFENCE, GOVERNMENT OF INDIA. The lead managers for Mazagon Dock Shipbuilders IPO are Yes Securities, Axis Capital, Edelweiss Financial, IDFC Bank and JM Financial. The Registrar to the Offer is Alankit Assignments Limited.
Mazagon Dock IPO Date
The opening and the closing date of IPO of Mazagon Shipbuilders Limited is SEPTEMBER 29, 2020 and OCTOBER 01, 2020.
Mazagon Shipbuilders Limited IPO Subscription
| Day / Date | QIB | NII | RII | Employee | Total Subscription |
| 1st Day – Sep 29 | 0.04x | 0.78x | 5.68x | 0.28x | 2.10x |
| 2nd Day – Sep 30 | 2.83x | 4.96x | 15.53x | 1.04x | 7.52x |
| 3rd Day – Oct 1 | 89.71x | 678.88x | 35.63x | 3.88x | 157.41x |
| Shares Offered or Net Issue | 1,51,26,750 | 45,38,025 | 1,05,88,725 | 3,45,517 | 3,05,99,017 |
The shares subscribed by the public will be updated here.
Mazagon Dock Shipbuilders Limited IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.
Mazagon Dock Shipbuilders Limited IPO Listing Date
Find the dates below on basis of allotment, refund, listing and more:
| Basis of Allotment Finalization | Oct 7, 2020 |
| Refunds Initiation | Oct 8, 2020 |
| Credit of Shares to Demat Account | Oct 9, 2020 |
| Share Listing Date | Oct 12, 2020 |
Mazagon Dock IPO Price Band / Cash Price
The face value of each share is Rs 10, but the price band of the IPO is Rs.135 to Rs.145.
Mazagon Dock Shipbuilders IPO Equity Size
This Initial Public Issue of 30,599,017 Equity Shares of Rs.10 each for cash at a price of Rs.135 to Rs.145 per equity share aggregating to Rs.443.69 Cr.
Mazagon IPO Share Offering
Net Offer:The Offer less the Employee Reservation Portion.
Offer for Sale: Offer for sale consists of Up to 30,599,017 Equity Shares of face value of Rs.10 each, aggregating Rs.443.69 Cr.
Mazagon Dock Shipbuilders IPO – Live Performance
The listing date of this IPO is Oct 12, 2020. You can check the live performance of the IPO here, only after it is listed on exchanges.
Mazagon Dock Shipbuilders IPO Grey Market Premium
The Mazagon Dock Shipbuilders Limited IPO Grey Market Premium price is 110-120, the Kostak rate is 450 and the Subject to Sauda is 8000.
Mazagon Dock Shipbuilders IPO – Company Overview
This Company is a wholly-owned GoI company, is a defence public sector undertaking shipyard under the Department of Defence Production, Ministry of Defence (MoD). Mazagon Dock Shipbuilders Limited has a maximum shipbuilding and submarine capacity of 40,000 DWT and is engaged in the construction and repair of warships and submarines for the MoD for use by the Indian Navy and other vessels for commercial clients.
The ship building company was conferred with the ‘Mini-ratna-I’ status in 2006, by the Department of Public Enterprises. Mazagon Dock Shipbuilders Limited is India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy. They are also one of the initial shipyards to manufacture Corvettes (Veer and Khukri Class) in India.
The business divisions in which Mazagon Dock Shipbuilders Limited operates are (i) shipbuilding and (ii) submarine and heavy engineering.
Mazagon Dock Shipbuilders Limited – Financial Statements
A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & millions) | ||||
| 31-Mar-20 | Mar-19 | 31-Mar-18 | 31-Mar-17 | |
| Total Assets | 2,09,660.28 | 2,08,479.34 | 1,93,703.72 | 1,93,911.65 |
| Total Revenue | 55,353.07 | 52,046.74 | 50,276.29 | 42,748.63 |
| Total Expense | 47,876.21 | 44,265.59 | 43,772.22 | 34,443.09 |
| Profit After Tax | 4,770.59 | 5,324.74 | 4,961.73 | 5,982.58 |
Earnings per Equity Share (in Millions)
| 31-Mar-20 | Mar-19 | 31-Mar-18 | 31-Mar-17 | |
| Basic & Diluted | 21.36 | 23.75 | 20.61 | 24.03 |
Their Company has posted profits continuously in the last four Fiscals. The total income was Rs.42,748.63 million, Rs.50,276.29 million, Rs.52,046.74 million and Rs.55,353.07 million for Fiscals 2017, 2018, 2019 and 2020 respectively.
Their profit for the year was Rs.5,982.58 million, Rs.4,961.73 million, Rs.5,324.74 million and Rs.4,770.59 million for Fiscals 2017, 2018, 2019 and 2020 respectively.
Mazagon IPO – Promoters
Since Mazagon Dock Shipbuilders is a PSU, the promoter would be THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF DEFENCE, GOVERNMENT OF INDIA
List of Related Parties (Key Managerial Personnel)
- Vijayalakshmi Kumar, Company Secretary (Chief Manager) and Compliance Officer
- Satish P. Shenai, Executive Director (finance)
- Hemant V. Karekar, Executive Director (east yard)
- Suresh Dadlani & Rohit Shrivastava, Executive Director (commercial)
Competitive Strengths of Mazagon Dock Shipbuilders Limited
- Only public sector defence shipyard constructing conventional submarines
- World class infrastructure capable of serving the requirements of the Ministry of Defence
- Location of facilities promotes closer association with vendors and customers
- Increase in indigenisation of vessels and implementation of the “Make in India” campaign
- Established track record with strong financial position and strong Order Book
- Experienced board and senior management team and skillfully trained workforce
Mazagon Dock Shipbuilders IPO Offer Details or Issue Details
| Offer | 30,599,017 Equity Shares aggregating to Rs. 443.69 Cr |
| Of which | |
| Employee Reservation Portion | 345,517 Equity Shares aggregating to Rs. [●] million |
| Accordingly, | |
| The Net Offer | 30,253,500 Equity Shares aggregating to Rs.[●] million |
| (A) QIB Portion | Not more than 15,126,750 Equity Shares |
| Of which: | |
| Mutual Fund Portion | 756,338 Equity Shares |
| Balance of QIB portion for all QIBs including Mutual Funds |
14,370,412 Equity Shares |
| (B) Non-Institutional Category | Not less than 4,538,025 Equity Shares |
| (C) Retail Category | Not less than 10,588,725 Equity Shares |
| Equity Shares outstanding prior to the offer | 201,690,000 Equity Shares |
| Equity Shares outstanding after the Offer | 201,690,000 Equity Shares |
Mazagon Dock IPO Issue Object
The objects of the Offer are to
(i) the filing fees to SEBI;
(ii) NSE/BSE charges for use of software for the book building;
(iii) payments required to be made to Depositories or the Depository Participants; and
(iv) payments required to be made to Stock Exchange for initial processing, filing and listing of the Equity Shares.
Business strategies of Mazagon Dock Shipbuilders Limited
- Export of their products to the international markets
- Focus on ship repair
- Augmentation of infrastructure and enhancing their manufacturing capacity
Mazagon IPO – Basis of the Offer Price
The Offer Price of the IPO will be determined by Mazagon Dock Shipbuilders in consultation with the Selling Shareholder and the lead managers. This would be determined on the basis of evaluation of market demand for the Equity Shares determined through the Book Building Process and on the basis of quantitative and qualitative factors.
The qualitative factors impacting the Offer Price are:
- Only public sector defense shipyard constructing conventional submarines;
- World class infrastructure capable of serving the requirements of the Ministry of Defense;
- Location of facilities promotes closer association with vendors and customers;
- Increase in indigenisation of vessels and implementation of the “Make in India” campaign
- Established track record with strong financial position and strong Order Book; and
- Experienced board and senior management team and skillfully trained workforce.
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-20 | 21.36 | 15.54 | – |
| 31-Mar-19 | 23.75 | 16.55 | – |
| 31-Mar-18 | 20.61 | 17.51 | 152.17 |
- Price to Earnings (P/E) ratio in relation to Price band of Rs.[●] to Rs.[●] per Equity Share
| Particulars | P/E ratio |
| Highest | 14.91 |
| Average | 11.25 |
| Lowest | 7.60 |
Mazagon Dock Shipbuilders IPO : Competitive Peers
| Face Value (Rs.) | P/E | EPS (Basic) (Rs.) | EPS (Diluted) (Rs.) | Return on Net Worth (%) | NAV per share (Rs.) | |
| Mazagon Dock Shipbuilders Limited* | 10 | [●] | 21.36 | 21.36 | 15.54 | 152.17 |
| Listed Peers | ||||||
| Cochin Shipyard Limited** |
10 | 7.60 | 48.05 | 48.05 | 16.98 | 283.02 |
| Reliance Naval and Engineering Limited** |
10 | NA | (23.87) | (23.87) | NA | (165.10) |
| Garden Reach Shipbuild ers & Engineers Limited** | 10 | 14.91 | 14.27 | 14.27 | 7.01 | 90.81 |
Mazagon Dock IPO Lead Managers
| Lead Managers |
| Yes Securities (India) Limited Axis Capital Limited Edelweiss Financial Services Limited IDFC Bank Limited JM Financial Limited |
Mazagon Dock Shipbuilders IPO Registrar to the Offer
| Registrar of the Offer |
| ALANKIT ASSIGNMENTS LIMITED Address: 205-208, Anarkali Complex, Jhandewalan Extension, New Delhi – 110055 Telephone: +91 11- 4254 1954/971/933, +91 22-4348 1257 Email: kamalarora@alankit.com, abhinavka@alankit.com Website: www.alankit.com Investor Grievance ID: mdligr@alankit.com Contact Person: Kamal Arora/ Abhinav Kumar Agrawal/Virender Sharma SEBI Registration Number: INR000002532 |
Mazagon IPO – Other Details
- Statutory Auditor – JCR & Co., Chartered Accountants.
- Legal Counsel to the Company – DSK Legal, Advocates & Solicitors
- Bankers to the Company – State Bank of India, HDFC Bank Limited
Mazagon Dock Shipbuilders IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
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