India Govt plans to sell 4.8% stake in Mazagon Dock Shipbuilders

MUMBAI : Indian government plans to sell a stake of up to 4.83% in Mazagon Dock Shipbuilders according to an sources on Thursday.

The government, which currently owns 84.83% of the company, is looking to sell 11.4 million shares representing a stake of 2.83% with an option to sell an additional 2%. The sale will be made at a floor price of 2,525 rupees per share, the shipbuilding company said, a near 8% discount to Thursday’s closing price.

The OFS is scheduled to open on April 4 for non-retail investors and on April 7 for retail investors. Mazagon Dock’s shares have appreciated nearly 23% year-to-date. ​

Mazagon Dock Shipbuilders Ltd (MDL), established in 1934 and based in Mumbai, India, is a premier public sector shipyard under the Ministry of Defence. The company specializes in the construction of warships and submarines for the Indian Navy, as well as offshore platforms and support vessels for offshore oil drilling. Since 1960, MDL has built a total of 805 vessels, including 30 warships ranging from advanced destroyers to missile boats, and eight submarines. The shipyard also produces cargo ships, passenger ships, supply vessels, water tankers, tugs, dredgers, fishing trawlers, barges, and border outposts for various domestic and international clients.​

Source : Reuters