Mazagon Dock Shipbuilders IPO is filed with SEBI on April 2nd 2018. Lets read the details about Mazagon Deck 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.
Mazagon Dock Shipbuilders IPO Review & Ratings
|Mazagon Dock Shipbuilders IPO Ratings & Review|
|Top Brokers Review||6.4/10|
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 misnitry 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 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.
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Mazagon Shipbuilders IPO Date
The details regarding the date of opening for Mazagon Ship Builders IPO is awaited and the same shall be released upon finalization of prospectus and approval of SEBI. The details would be accordingly updated herein.
Mazagon Dock Shipbuilders IPO Subscription
These details would be updated upon release of the IPO.
Mazagon Dock Shipbuilders IPO Allotment Status
The analysis of allotment status of the IPO subscription would be undertaken post releasing of the IPO and accordingly would be updated herein.
Mazagon Shipbuilders IPO Price Band
The price band and related details of Mazagon Dock Shipbuilders would be updated post release of the IPO.
Mazagon Dock Shipbuilders IPO Issue Size
The Mazagon Dock Shipbuilders IPO consists of 22,410,000 equity shares to be offered to the public at large. Apart from this, certain shares would also be reserved for the employees of Mazagon Dock Shipbuilders. Though the number of shares reserved for employees are not disclosed as yet, it has been mentioned that the reserved shares would not exceed 5% of the post-offer paid-up equity share capital. Also, the total issue i.e. the IPO to general public and the shares for employees as an aggregate would not exceed 10% of post-offer paid-up equity share capital.
Mazagon Dock Shilbuilders IPO Equity Share Offerings
While the IPO size is provided and disclosed at this stage, the total fund expected from IPO remains undisclosed and un-discussed. Though in this article, the factors affecting the price have been discussed in subsequent paras – this detail along with the number pf shares would be helpful in understanding the size of IPO.
Mazagon Dock Shipbuilders Limited – 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.
Key members of Mazagon Dock Shipbuilders Limited:
- Rakesh Anand (Chairman and Managing Director)
- Rajiv Lath (Director – Submarine & Heavy Engineering)
- Sanjiv Sharma (Director -Finance and Chief Financial Officer)
Competitive Strengths of Mazagon Dock Shipbuilders Limited
- One and 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
Business strategies of Mazagon Dock Shipbuilders Limited
- Export of our products to the international markets
- Focus on ship repair
- Augmentation of infrastructure and enhancing our manufacturing capacity
Mazagon Dock Shipbuilders Limited – Financial Statements
A snapshot of financial position of Mazagon Dock Shipbuilders Limited
Assets of the Company
|Assets (in INR & Millions)|
Revenue & PAT of the Company
|Revenue & Profits (in INR & Millions)|
|Profit after Tax (PAT)||5490||6025||5285||-2830||4073|
Earnings per Equity Share
|Earning per Equity Share (in INR)|
The revenue figures and the profit figures appear to be quite stagnant. But since the PSU is very large in size & has continued to make massive PAT, we recommend to invest with this IPO for long term. This company will give massive return in the later half of its term.
Mazagon Dock Shipbuilders Limited Promoters
Since Mazagon Dock Shipbuilders is a PSU, the promoter would be President of India, acting through MoD. Also, on the same account, the details relating to the interest of promoters in the Company are also not disclosed.
Mazagon Dock Shipbuilders IPO Offer Details or Issue Details
|Offer||[●] Equity Shares aggregating to ₹ [●] million|
|Employee Reservation Portion||[●] Equity Shares aggregating to ₹ [●] million|
|The Net Offer||22,410,000 Equity Shares aggregating to ₹[●] million|
|(A) QIB Portion||11,205,000 Equity Shares|
|Mutual Fund Portion||560,250 Equity Shares|
|Balance of QIB portion for all QIBs including|
|10,644,750 Equity Shares|
|(B) Non-Institutional Category||Not less than 3,361,500 Equity Shares|
|(C) Retail Category||Not less than 7,843,500 Equity Shares|
|Equity Shares outstanding prior to the offer||224,100,000 Equity Shares|
|Equity Shares outstanding after the Offer||224,100,000 Equity Shares|
Mazagon Dock Shipbuilders IPO Issue Object
The objects of the Offer are to (i) to carry out the disinvestment of equity Shares by the Selling Shareholder constituting and (ii) achieve the benefits of listing the Equity Shares on the Stock Exchanges. Company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholder.
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Mazagon Dock Shipbuilders 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 quantitative factors which influence the offer price are:
- EPS – The weighted average Basic EPS for latest 3 years is INR 22.63 and diluted EPS is 22.63 (based on standalone financials)
- Price/earning ratio
- Return on Net Worth – The RONW at weighted average of recent 3 years is 23.91% based on standalone financials)
- Net Asset Value (“NAV”) per Equity Share – NAV as on March 31, 2017 is ₹ 105.40 (based on standalone financials)
- Comparison with listed industry peer review – In terms of EPS, it secures second position among the peers.
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Mazagon Dock Shipbuilders IPO 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|
Mazagon Dock Shipbuilders IPO Review by Top 10 Stock Brokers
|Top Stock Brokers Review||Company Repu-tation||Compe-titive Edge||Finan-cial State-ment||Popu-larity Index||Promo-ters Repu-tation|
Mazagon Dock Shipbuilders IPO Grey Market Premium
Just like any other IPO, even for Mazagon Dock Shipbuilders, the grey market would be open almost a fortnight before the IPO release date and the kostak rates would also be available in the market.
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Mazagon Dock Shipbuilders IPO News
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