Mazagon Dock Shipbuilders Limited is joining the IPO rally. The defense PSU has announced the opening of its IPO for subscription on September 29. The company aims to raise ₹ 443.69 crores through the IPO.
MAZAGON DOCK SHIPBUILDERS LTD
Mazagon Dock Shipbuilders Ltd is India’s leading defense public sector undertaking shipyard under the Ministry of Defense. It is primarily engaged in constructing and repairing warships and submarines for the MoD and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial clients. It is the only shipyard to build destroyers and conventional submarines to be used by the Indian Navy.
Objective of the Issue
- To carry out the disinvestment plan of 30,599,017 equity shares by selling shareholders constitutes 15.17% of pre-offer equity share capital.
- To achieve the benefits of share listing on the stock exchanges.
Basic details about MAZAGON
| Full name | MAZAGON DOCK SHIPBUILDERS LTD |
| Sector | Ship Building |
| Industy | Ship Building |
| Company Website | www.mazagondock.in |
Dates to remember
| IPO Open | 29 September 2020 |
| IPO Close | 01 October 2020 |
| Basis of Allotment | 07 October 2020 |
| Refunds date | 08 October 2020 |
| Credit to Demat Account | 09 October 2020 |
| Listing Date | 12 October 2020 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹413.09-₹443.69 crores |
| Number of shares offered to the public | 30,599,017 shares |
| Face value | ₹10 per equity share |
| Price band | ₹135-₹145 per equity share |
| Retail portion | 35% |
| Lot size | 103 Nos |
| Minimum application | 1 lot – 103 shares |
| Maximum application | 13 lot – 1339 shares |
| Minimum application amount | ₹14,935 |
| maximum application amount | ₹194,155 |
| Listing Exchange | BSE, NSE |
More details about the company
The company’s business divisions include (i) shipbuilding and (ii) submarine and heavy engineering. The shipbuilding division includes the building and repair of naval ships. It is currently building four P-15 B destroyers and four P-17A stealth frigates and undertaking repair and refit of a ship for the MoD for use by the Indian Navy. The submarine and heavy engineering division includes building, repair and refits of diesel electric submarines. It is currently in the process of delivering five Scorpene class submarines under a technology transfer agreement with Naval Group as well as one medium refit and life certification of a submarine for the MoD for use by the Indian Navy.
Since 1960, the company has built a total of 795 vessels including 25 warships, from advanced destroyers to missile boats and three submarines. Mazagon Dock has also delivered cargo ships, passenger ships, supply vessels, multipurpose support vessels, water tankers, tugs, dredgers, fishing trawlers, barges and border outposts for various customers in India as well as abroad.
Strengths
- India’s leading public sector defense shipyard company.
- Strong order book and financial position.
- World class infrastructure facilities.
- Strategic location at Mumbai on the west coast of India.
Financials
| Mazagon Dock Shipbuilders’ financial performance (in INR crore) | ||||
| FY2017 | FY2018 | FY2019 | FY2020 | |
| Revenue | 4,274.9 | 5,027.6 | 5,204.7 | 5,535.3 |
| Expenses | 3,444.3 | 4,377.2 | 4,426.6 | 4,787.6 |
| Net income | 597.7 | 456.2 | 513.1 | 458.0 |
| Net margin (%) | 14.0 | 9.1 | 9.9 | 8.3 |
Financial summary
| Particulars | For the year/period ended (₹ in million) | |||
|---|---|---|---|---|
| 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | 31-Mar-17 | |
| Total Assets | 209,660.28 | 208,479.34 | 193,703.72 | 193,911.65 |
| Total Revenue | 55,353.07 | 52,046.74 | 50,276.29 | 42,748.63 |
| Profit After Tax | 4,770.59 | 5,324.74 | 4,961.73 | 5,982.58 |
Valuation of Mazagon Dock Shipbuilders (as of FY2020)
| Earnings Per Share (EPS) | ₹ 21.36 |
| Price/Earnings (PE ratio) | 6.32 – 6.79 |
| Return on Net Worth (RONW) | 15.54% |
| Net Asset Value (NAV) | ₹ 152.17 per share |
Company Promoters
- The President of India acting through the Ministry of Defense, GoI is the promoter of the company.
Mazagon IPO Lead managers
- Yes Securities (India) Ltd.
- Axis Capital Ltd
- Edelweiss Financial Services Ltd
- IDFC Securities Ltd
Registrar of Mazagon IPO
Alankit Assignments Limited
205-208, Anarkali Complex,
Jhandewalan Extension
New Delhi – 110 055
Phone: +91 11 4254 1234
Fax: +91 11 4154 3474
Email: mdl_ipo@alankit.com
Website: www.alankit.com
Mazagon Dock Contact Details
Mazagon Dock Shipbuilders Limited
Dockyard Road,
Mumbai – 400010
Phone: +91 22 2376 2000
Fax: +91 22 2372 5043
Email: investor@mazdock.com
Website: www.mazagondock.in
Mazagon IPO Allotment Status
Mazagon IPO allotment status will be available on Link Intime’s website.
Click on this link to get allotment status.
Mazagon Dock IPO Subscription Details
No. of Times Issue Subscribed (BSE + NSE) | |||||
|---|---|---|---|---|---|
| As on Date & Time | QIB | NII | RII | Employee | Total |
| Shares Offered | 15,126,750 | 4,538,025 | 10,588,725 | 345,517 | 30,599,017 |
| Oct 1, 2020 18:00 | 89.71x | 678.88x | 35.63x | 3.88x | 157.41x |
Final thoughts
Mazagon IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post gave you enough details to make a fundamental study of the company. learn well and make a wise decision.
happy investing
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