The government has allocated 90 per cent of Mazagon Dock Shipbuilders’ offering to non-retail investors, with the remaining 10 per cent reserved for retail investors
| Photo Credit:
FRANCIS MASCARENHAS

The shares of Mazagon Dock Shipbuilders Limited were trading at ₹2,543 down by ₹194.55 or 7.11 per cent on the NSE today at 10.30 am.

The Government of India, through the Ministry of Defence, announced yesterday an offer for sale (OFS) of Mazagon Dock Shipbuilders Limited shares at a floor price of ₹2,525, representing a 7.7 per cent discount to the current market price of ₹2,738.

The base issue size includes 1.14 crore equity shares (2.83 per cent of outstanding capital), with a greenshoe option of an additional 0.81 crore shares (2 per cent of capital), bringing the potential total offering to 1.95 crore shares valued at approximately ₹4,918 crore.

The OFS will be conducted in two phases: non-retail investors (QIBs and HNIs) can participate today (April 4, 2025), while retail investors’ window opens on April 7, 2025. Both segments will operate during market hours from 9:15 am to 3:30 pm on their respective days.

The government has allocated 90 per cent of the offering (1.75 crore shares worth ₹4,426.37 crore) to non-retail investors, with the remaining 10 per cent (19.48 lakh shares worth ₹491.82 crore) reserved for retail investors. Additionally, 50,000 equity shares may be offered to eligible employees.

Within the non-retail portion, 25 per cent has been reserved for mutual funds and insurance companies. Retail bids are classified as those up to ₹2 lakh, while larger bids fall into the non-retail category.

This divestment is part of the government’s ongoing effort to reduce its stake in public sector enterprises while maintaining its position as the promoter of the defence shipbuilding company.

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Published on April 4, 2025