Mazagon Dock Shipbuilders Limited, a wholly owned GoI company conferred with the Mini Ratna I status and India's only shipyard to have built destroyers and conventional submarines for the Indian Navy (Source: CRISIL Report); will be opening its initial public offering for subscription on September 29, 2020 and will close on October 1, 2020 with a price band of ₹ 135 - ₹ 145 per Equity Share.
The Offer is being made through book building process in accordance with regulation 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957 and regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended where allocation to QIBs is not more than 50% of the Net Offer, Non-Institutional Bidders is not less than 15% of the Net Offer and Retail Individual Bidders is not less than 35% of the Net Offer.
The objects of the Offer are to carry out the disinvestment of 30,599,017 Equity Shares by the Selling Shareholder constituting 15.17% of our Company's pre-Offer paid up Equity Share capital. Issue Proceeds will go to the president of India, acting through the ministry of defense, Government of India (the Selling Shareholder)
YES Securities India Ltd, Axis Capital Ltd, Edelweiss Financial Service Ltd, DAM Capital Advisors Limited (formerly known as IDFC Securities Ltd) and JM Financial Ltd are the BRLMs to the Offer.
Mazagon Dock Shipbuilders Ltd. - Business Details
Headquartered in Mumbai and strategically located on the west coast of India, Mazagon Dock was incorporated as a private limited company in 1934 and in the year 1960, the GoI took over our Company to expand its warship development programme designating it as a DPSU under the MoD. Currently operates in 2 business segments - shipbuilding and submarine & heavy engineering. Since 1960 the company has built a total of 795 vessels including 25 warships ranging from advanced destroyers to missile boats and 3 submarines as well as cargo ships, passenger ships, supply vessels, multi-purpose support vessels, water tankers, tugs, dredgers, fishing trawlers, barges and border outposts (Source: CRISIL report). In the last 18 fiscals the yard has delivered 27 warships building projects and 5 submarines and heavy engineering projects that include refit and repairs of ships and submarines.
The company has an established track record with a strong financial position. It has posted profits continuously in the last 4 fiscals. In FY20 its revenue stood at Rs. 34,766.96 mn from the shipbuilding division and Rs 14,935.39 mn from the submarine and heavy engineering division. As of July 31, 2020 the companies Order Book stood at Rs. 540,740 million comprising of three major shipbuilding projects and two submarine projects. Going forward besides focusing on the ship repair services, the company management plans to revive its exports of defence and other commercial products to Latin America, Africa, South East Asia, Middle East and some European Regions for which it has already entered into agency agreements with sales agents.
Some of the recent warships delivered by Mazagon dock are INS Kolkata, INS Kochi and INS Chennai. The last vessel it delivered to the MOD for use by the Indian Navy was a Scorpene class submarine - INS Khanderi in 2019. The 1st Scorpene class submarine INS Kalvari was delivered in 2017.