Mazagon Dock IPO subscribed over 2 times on first day
Published on Sep 29, 2020 18:16
The initial public offer (IPO) of Mazagon Dock Shipbuilders received bids for 6.39 crore shares on Tuesday, 29 September 2020, as against 3.05 crore shares on offer, as per the National Stock Exchange of India (NSE) website data at 17:00 IST. The issue was subscribed 2.09 times.
The issue opened for bidding today, 29 September 2020 and it will close on Thursday, 1 October 2020. The price band for the IPO is set at Rs 135-145 per share.
The IPO consists of offer for sale of 3.05 crore equity shares by the Government of India (GOI). The company will not receive any proceeds from the IPO. The key objective of the offer is to carry out the disinvestment and achieve the benefits of listing the equity shares on the stock exchanges.
On a consolidated basis, the company recorded sales of Rs 4,977.65 crore and profit after tax of Rs 477.06 crore in the year ended on 31 March 2020.
Mazagon Dock Shipbuilders (MDL), a public sector undertaking under the Ministry of Defence (MoD), is engaged in the construction and repair of warships and submarines for use by the Indian Navy and other vessels for commercial clients. The company was conferred with the `Mini-ratna-I` status in 2006 by the Department of Public Enterprises.
The business operations of the company are divided into two divisions viz. shipbuilding and submarine and heavy engineering. The shipbuilding division of the company is engaged in building and repair of naval ships. The submarine and heavy engineering division of the company undertakes building, repair and refits of diesel electric submarines.
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