Mazagon Dock Shipbuilders share price in focus as government to sell 4.8% stake in defence PSU via OFS today

Mazagon Dock Shipbuilders share price declined over 6% on Friday after the company announced that the government will sell up to 4.8% stake in the defence PSU through an offer for sale (OFS). Mazagon Dock Shipbuilders shares fell as much as 6.74% to ₹2,550.90 apiece on the BSE.

The government will sell up to 4.83% stake in Mazagon Dock Shipbuilders at a floor price of ₹2,525 per share.

“Offer for Sale in Mazagon Dock Shipbuilders Limited (MDL) opens tomorrow for Non-Retail investors. Retail investors can bid on Monday. Government will divest 2.83% equity with an additional 2% as green shoe option,” DIPAM Secretary Arunish Chawla said in a post on X on April 3.

For institutional investors, Mazagon Dock Shipbuilders OFS will open on Friday, April 4, while retail investors can bid for the OFS on April 7.

The government is selling 1.14 crore equity shares of Mazagon Dock Shipbuilders, with a greenshoe option to sell additional 80.67 lakh shares. Mazagon Dock OFS of up to 4.83% stake at a floor price of ₹2,525 a piece would fetch about ₹5,000 crore to the government.

Mazagon Dock Shipbuilders Stock Price Performance

Mazagon Dock Shipbuilders share price has witnessed a significant uptrend, rising 27% over the past month and gaining 22% on a year-to-date (YTD) basis. Over the last six months, the defence PSU stock has surged 34%. This robust performance stands in sharp contrast to the benchmark Sensex, which rose 4.4% in the past month but declined 2.8% YTD and fell 7.5% over the six-month period.

On a longer-term basis, Mazagon Dock Shipbuilders shares have delivered exceptional returns, rallying 145% over the past year and soaring an impressive 2,076% over the last three years, firmly placing it in the multibagger category.

At 10:10 AM, Mazagon Dock Shipbuilders shares were trading 6.51% lower at ₹2,557.35 apiece on the BSE.

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