Mazagon Dock Shipbuilders IPO – Review, Allotment Status, Subscription, Price, Date & more

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
CriteriaRatings
Industry Sentiments6.4/10
Industry Ranking6.5/10
Company Background6.2/10
Company Reputation6.4/10
Competitive Edge6.5/10
Financial Statements6.2/10
Popularity Index6.4/10
Promoters Reputation6.4/10
Retail Appetite6.8/10
Top Brokers Review6.4/10
Overall Ratings6.4/10
Star Ratings★★★★☆

Summary of Mazagon Dock Shipbuilders IPO

mazagon dock shipbuilders ipoMazagon 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

 Subscription
Day 1X
Day 2X
Day 3X
Day 4X
Day 5X

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)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Non-Current Asset14,95313,01210,67910,6247,748
Current Asset1,74,9181,73,9861,71,3391,51,2011,49,946
Total Asset1,89,8711,86,9981,82,0181,61,8241,57,694

Revenue & PAT of the Company

Revenue & Profits (in INR & Millions)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Total Revenue4295148867421093499828647
Profit after Tax (PAT)549060255285-28304073

Earnings per Equity Share

Earning per Equity Share (in INR)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Basic22.0524.2021.23NANA
Diluted22.0524.2021.23NANA

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
Of which
Employee Reservation Portion[●] Equity Shares aggregating to ₹ [●] million
Accordingly,
The Net Offer22,410,000 Equity Shares aggregating to ₹[●] million
(A) QIB Portion11,205,000 Equity Shares
Of which:
Mutual Fund Portion560,250 Equity Shares
Balance of QIB portion for all QIBs including
Mutual Funds
10,644,750 Equity Shares
(B) Non-Institutional CategoryNot less than 3,361,500 Equity Shares
(C) Retail CategoryNot less than 7,843,500 Equity Shares
Equity Shares outstanding prior to the offer224,100,000 Equity Shares
Equity Shares outstanding after the Offer224,100,000 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

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 ReviewCompany Repu-tationCompe-titive EdgeFinan-cial State-mentPopu-larity IndexPromo-ters Repu-tation
Angel Broking8.1/108.1/108.1/108.1/108.1/10
Sharekhan8.2/108.1/108.2/108.1/108.2/10
Kotak Securities8.0/108.1/108.1/108.1/108.0/10
ICICI Direct8.0/108.0/108.3/108.1/108.1/10
IIFL8.1/108.2/108.0/108.0/108.1/10
Edelweiss8.1/108.1/108.1/108.0/108.2/10
Zerodha8.1/108.1/108.1/108.1/108.0/10
5Paisa8.1/108.1/108.1/108.1/108.1/10
Karvy8.1/108.0/108.2/108.1/108.1/10
Motilal Oswal8.1/108.1/108.2/108.0/108.2/10

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

News 1 – Mazagon Dock Shipbuilders, Rail Vikas Nigam & two other PSUs file IPO papers


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