Mazagon Dock IPO Price Band set at Rs 135-145 per Share; Issue to Open on September 29, 2020

 

Vice Admiral, Narayan Prasad, CMD, Mazagon Dock Shipbuilders Ltd

 

·                Price Band of ₹ 135 – ₹ 145 per Equity Share, Face Value of Rs 10 each

·         Issue Opening Date – September 29, 2020 and Issue Closing Date – Oct 1, 2020

·         Minimum Bid Lot is 103 Equity Shares and in multiples of 103 Equity Shares thereafter

·         The Offer and the Net Offer will constitute 15.17% and 15.00% respectively of the post-Offer paid-up equity share capital of our Company.

·         The Floor Price is 13.5 times the Face Value of the Equity Shares and the Cap Price is 14.5 times the Face Value of the Equity Shares.

 

INITIAL PUBLIC OFFERING OF 30,599,017 EQUITY SHARES OF FACE VALUE OF ₹10 EACH (“EQUITY SHARES”) OF MAZAGON DOCK SHIPBUILDERS LIMITED (OUR “COMPANY” OR THE “ISSUER”) THROUGH AN OFFER FOR SALE BY THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF DEFENCE, GOVERNMENT OF INDIA (THE “SELLING SHAREHOLDER”), FOR CASH AT A PRICE OF ₹[●] PER EQUITY SHARE (THE “OFFER PRICE”), AGGREGATING TO ₹[●] MILLION (THE “OFFER”). 345,517 EQUITY SHARES HAVE BEEN RESERVED FOR ELIGIBLE EMPLOYEES (AS DEFINED BELOW) (THE “EMPLOYEE RESERVATION PORTION”). THE OFFER LESS EMPLOYEE RESERVATION PORTION IS REFERRED TO AS THE NET OFFER. THE OFFER WILL COMPRISE OF A NET OFFER OF 30,253,500 EQUITY SHARES AND THE EMPLOYEE RESERVATION PORTION OF 345,517 EQUITY SHARES. THE OFFER AND THE NET OFFER WILL CONSTITUTE 15.17% AND 15.00% RESPECTIVELY OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

 

INS Delhi D61

Mumbai, September 24, 2020: Mazagon Dock Shipbuilders Limited, a wholly owned GoI company conferred with the Mini Ratna I status and India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy (Source: CRISIL Report); will be opening its initial public offering for subscription on September 29, 2020 and will close on October 1, 2020 with a price band of  ₹ 135 – ₹ 145 per Equity Share.

The Offer is being made through book building process in accordance with regulation 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957 and regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended where allocation to QIBs is not more than 50% of the Net Offer, Non-Institutional Bidders is not less than 15% of the Net Offer and Retail Individual Bidders is not less than 35% of the Net Offer.

 The objects of the Offer are  to carry out the disinvestment of 30,599,017 Equity Shares by the Selling Shareholder constituting 15.17% of our Company’s pre-Offer paid up Equity Share capital. Issue Proceeds will go to the president of India, acting through the ministry of defense, Government of India (the Selling Shareholder)

.YES Securities India Ltd, Axis Capital Ltd, Edelweiss Financial Service Ltd, DAM Capital Advisors Limited (formerly known as IDFC Securities Ltd) and JM Financial Ltd are the BRLMs to the Offer.