Mazagon Dock Shipbuilders IPO is leading defence public sector undertaking shipyard under the Ministry of Defence and is all set to make a debut in the stock market with an issue size of 443.69 Cr.
Mazagon Dock Shipbuilders IPO IPO– Overview
| Mazagon Dock Shipbuilders IPO Issue Date | 29th Sept- 1th oct 2020 |
| Mazagon Dock Shipbuilders IPO Opening Date | 29th Sept 2020 |
| Mazagon Dock Shipbuilders IPO Face Value | INR 10 per share |
| Mazagon Dock Shipbuilders IPO Price | INR 145 per share |
| Mazagon Dock Shipbuilders IPO Lot Size | 103 Shares |
| Issue Size | 443.69 Cr |
| Offer for sale | 443.69 Cr |
| Issue Type | Book built Issue IPO |
| Listing At | BSE, NSE. |
| QIB Shares Offered | 89.71 times |
| NII (HNI) Shares | 678.88 times |
| Company Promoters | The President of India acting through the Ministry of Defence, GoI is the promoter of the company. |
IPO-Tentative Dates
| MAZAGON DOCK SHIPBUILDERS IPO opening date | 29 Sept 2020 |
| MAZAGON DOCK SHIPBUILDERS IPO closing date | 1 Oct 2020 |
| Basis of Allotment | 7 Oct 2020 |
| Initiation of Refunds | 8 Oct 2020 |
| The credit of Shares to Demat | 9 Oct 2020 |
| MAZAGON DOCK SHIPBUILDERS IPO Listing Date | 12 Oct 2020 |
Industry Overview.
In line with the falling shipyard capacity and stretched finances of owners and banks, the global order book declined for most vessel types in 2015 and 2016. Between 2012 and 2016, the global order book declined at a compound annual growth rate (CAGR) of 8.9%. From their peak values in 2008 and 2009, the order books for container ships, oil tankers, dry bulk carriers, and general cargo have declined by 46%, 51%, 61%, and 82% respectively. This sluggishness was large because of supply overhang amid low demand, especially in the dry bulk and oil tanker segments.
Company Overview
Mazagon Dock Shipbuilders Ltd is the India’s leading defence public sector undertaking shipyard under the Ministry of Defence. Mazagon Dock is primarily engaged in constructing and repairing warships and submarines for the MoD and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial clients. It is the only shipyard to build destroyers and conventional submarines to be used by the Indian Navy.
The business has 2 key operating divisions – Shipbuilding division that undertakes building and repairing of naval ships, whereas Submarine and heavy engineering division includes building, repairing, and refitting of diesel electric submarines. Till 2020, the company has built 795 vessels, including 25 warships, 4 missile boats, 3 submarines, 6 Leander class frigates, 3 Godavari class frigates, 3 Shivalik class frigates, 3 corvettes, and 6 destroyers.
IPO-Objectives
- To carry out the disinvestment plan of 30,599,017 equity shares by selling shareholders constitutes 15.17% of pre-offer equity share capital
- To achieve the benefits of share listing on the stock exchanges.
Financial Statements
| Particulars | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 |
| Total Assets | 209,660.28 | 208,479.34 | 193,703.72 |
| Total Revenue | 55,353.07 | 52,046.74 | 50,276.29 |
| Profit After Tax | 4,770.59 | 5,324.74 | 4,961.73 |
Strengths
- India’s leading public sector defence shipyard company.
- World-class infrastructure facilities.
- Strategic location at Mumbai on the west coast of India.
- Strong order book and financial position.
Weakness
- The continuing effect of the COVID-19 pandemic on the company’s business and operations is highly uncertain and cannot be predicted.
- The imposition of liquidated damages and invocation of performance bank guarantees/indemnity bonds by the company’s customers could impact its results of operations and it may face potential liabilities from lawsuits and claims by customers in the future.
Company Contact Information
Mazagon Dock Shipbuilders Limited
Dockyard Road, Mazagon,
Mumbai – 400010
Phone: 91 22 2376 2000
Email: investor@mazdock.com
Website: https://mazagondock.in/
Mazagon Dock IPO Registrar
Alankit Assignments Ltd
Phone: (011) 4254 1234
Email: abhijitd@alankit.com
Website: https://www.alankit.com/
