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Mazagon Dock Shipbuilders IPO shares rose sharply on debut
Mazagon Dock Shipbuilders IPO shares rose sharply on debut

Mazagon Dock Shipbuilders shares list at a premium

  • Mazagon Dock Shipbuilders IPO was subscribed over 150 times
  • Many brokerages had recommended subscribe to the offer

State-owned defence firm Mazagon Dock Shipbuilders made a strong debut today. Mazagon Dock shares listed at 190 on BSE as compared to issue price of 145. The IPO of Mazagon Dock Shipbuilders was subscribed a whopping 157.41 times. The 444 crore public offer received bids for 4,81,64,59,117 shares against 3,05,99,017 shares on offer.

The retail investor segment was subscribed 35 times, while portion reserved for non-institutional investors was subscribed 678.88 times and qualified institutional buyers 89.71 times.

In comparison, shares of UTI AMC today listed at a discount on exchanges.

Mazagon Dock Shipbuilders joined the likes of other state-owned firms like IRCTC, Cochin Shipyard and Housing and Urban Development Corporation Ltd (HUDCO) to have received stellar response from investors for their initial public offers.

Mazagon Dock Shipbuilders is engaged in construction and repair of warships and submarines for use by the Indian Navy and other vessels for commercial clients, according to the red herring prospectus.

The company, which received the 'Miniratna' status in 2006, is the only shipyard to have built destroyers and conventional submarines for the Indian Navy. Mazagon Dock Shipbuilders posted a net profit of 477 crore, including the share of its associate company Goa Shipyard, on a revenue of 5,535 core in the fiscal year 2019-20.

Many brokerages had recommended subscribe to the offer, citing attractive valuation, strong order book and new defence procurement policy that is expected to accelerate indigenization.

Garden Reach Shipbuilders and Engineers was the last shipbuilding PSU company to list on the exchanges in 2018. Prior to that, Cochin Shipyard got listed in 2017.

Yes Securities, Axis Capital, Edelweiss Financial Services, DAM Capital Advisors and JM Financial are the managers to the offer.

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