1 min read.Updated: 02 Oct 2020, 08:08 AM ISTRavindra Sonavane
The IPO has received bids for 4.82 billion equity shares against the IPO size of 30.60 million shares, data available on stock exchanges reveals
Mumbai: The initial public offering (IPO) of state owned shipbuilder Mazagon Dock Shipbuilders Ltd closed on Thursday with tremendous investor interest resulting in the share sale setting a new subscription record for a PSU company.
The ₹444 crore public issue was subscribed more than 157 times, making it the most subscribed IPO among public sector companies, beating the likes of IRCTC which was subscribed 110 times.
The IPO has received bids for 4.82 billion equity shares against the IPO size of 30.60 million shares, data available on stock exchanges reveals.
The portion of the share sale reserved for institutional investors was subscribed 89.71 times, while those reserved for non institutional investors and retail investors was subscribed 678.88 times and 35.63 times respectively.
The price band for the IPO was fixed at ₹135-145 a share.
In FY20, Mazagon recorded a revenue of Rs3,476 crore from the shipbuilding division and a revenue of Rs1,493.5 crore from the submarine and heavy engineering division. As of 31 July, its order Book stood at Rs54,074 crore comprising three major shipbuilding projects and two submarine projects.
"We are constantly working towards sustaining our leadership position in defense ship/submarine building as well as looking actively at the Repair/Maintenance segment and export markets for adding additional revenue to the company", said Vice Admiral, Narayan Prasad, CMD, Mazagaon Dock Ltd, in a statement.
Axis Capital Ltd, Edelweiss Financial Service Ltd and other investment banks advised Mazagon Dock on the IPO.
Also on Thursday, India’s oldest mutual fund manager UTI Asset Management Co Ltd’s initial public offering closed for subscription receiving bids for 2.3 times the share on offer.
The portion set aside for retail investors was subscribed 2.32 times and that for employees was subscribed 1.34 times. The portion reserved for institutional investors and HNI subscribed 3.34 times and 0.93 times respectively.
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