Mazagon Dock IPO Proves Huge Hit, Gets Subscribed a Whopping 157.41 Times on Last Day of Bidding

The initial public offer of state-owned defence firm Mazagon Dock Shipbuilders received stellar response from investors and was subscribed a whopping 157.41 times on the last day of bidding on Thursday. The Rs 444 crore public offer received bids for 4,81,64,59,117 shares against 3,05,99,017 shares on offer, as per NSE data.

The portion reserved for non-institutional investors was subscribed 678.88 times, qualified institutional buyers 89.71 times and retail investors 35.63 times. The IPO was at a planning stage for the last 2 years and its current closure has been extremely successful, Mazagaon Dock CMD Narayan Prasad said in a statement. “We are constantly working towards sustaining our leadership position in defence ship/submarine building as well as looking actively at the repair/maintenance segment and export markets for adding additional revenue to the company,” he said.

Price range for the IPO, which opened for bidding on Tuesday, was at Rs 135-145 per share. Mazagon has 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. Yes Securities, Axis Capital, Edelweiss Financial Services, DAM Capital Advisors and JM Financial are the managers to the offer.

Shares of the company are proposed to be listed on BSE and NSE. The company 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. 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.