Mazagaon Dock
Mazagaon Dock IPO Subscribed 2.09 times on Day 1
Retail book subscribed in wee hours of market opening
Mumbai, September 29, 2020: India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy (Source: CRISIL Report); received bids of 6,39,74,227 shares against the offered 3,05,99,017 shares, as per the 5pm data available on the websites of BSE and NSE. The portion reserved for retail investors was subscribed 5.65 times. Non-Institutional Investor category was subscribed 0.78 times and Qualified Institutional Buyer category was subscribed 0.04 times.
The company has an established track record and has posted profits continuously in the last 4 fiscals. In FY20 it’s 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 company's Order Book stood at Rs. 540,740 million comprising of three major shipbuilding projects and two submarine projects.
Collectively brokerage houses such as Angel Broking, Asit C Mehta, Philip Capital, Religare Broking, SMC Capital, Ventura Securities, Choice broking, Hem Securities, Sushil Finance, ICICI Securities, LKP Securities, Nirmal Bang have given a "subscribe" rating to the issue with a medium and long term objective in mind, citing its revenue visibility, healthy ROE, debt free status, world class infrastructure facilities, expansion and diversification plans, export revival plans besides its lower valuation viz peers
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
Yes Securities Ltd, Axis Capital Ltd, Edelweiss Financial Service Ltd, Dam Capital erstwhile IDFC Securities Ltd and JM Financial Ltd are the BRLMs to the Issue.
About Mazagon Dock Shipbuilders Limited: MSDL is a defense public sector undertaking shipyard under the Department of Defence Production, MoD with a maximum shipbuilding and submarine capacity of 40,000 DWT (Source: CRISIL Report), engaged in the construction and repair of warships and submarines for the MoD for use by the Indian Navy and other vessels for commercial clients. It is a wholly owned GoI company, conferred with the 'Mini-ratna-I' status in 2006, by the DPE. MSDL is India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy and also one of the initial shipyards to manufacture Corvettes (Veer and Khukri Class) in India (Source: CRISIL Report). The business divisions in which the Company operates are (i) shipbuilding and (ii) submarine and heavy engineering. Its shipbuilding division includes the building and repair of naval ships. The Company is currently building four P-15 B destroyers and four P-17A stealth frigates and undertaking repair and refit of a ship for the MoD for use by the Indian Navy. Its submarine and heavy engineering division includes building, repair and refits of diesel electric submarines. The Company is currently building/ in the process of delivering four Scorpene class submarines under a transfer of technology agreement with Naval Group as well as one medium refit and life certification of a submarine for the MoD for use by the Indian Navy. Since 1960, MSDL has built a total of 795 vessels including 25 warships, from advanced destroyers to missile boats and three submarines. (Source: CRISIL Report). The Company has also delivered cargo ships, passenger ships, supply vessels, multipurpose support vessels, water tankers, tugs, dredgers, fishing trawlers, barges and border outposts for various customers in India as well as abroad. (Source: CRISIL Report).
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