Stellar Response: Mazagon Dock IPO Subscribed 157.41 times on Last Day

Highest NII subscription in the last 2 years , Most Subscribed PSU IPO

Mumbai, October 1, 2020: India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy (Source: CRISIL Report); saw a fantastic response on its closing day, received bids of 4,816,459,117 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 35.63 times. Non-Institutional Investor category was subscribed 678.88  times,  and Qualified Institutional Buyer category was subscribed 89.71 times. The employee category was fully subscribed at 3.88 times.

The Non Institutional Portion subscription has been the second highest in the last decade after Apollo Microsystems which was a NII response of 958 x.

On the success of the IPO, Vice Admiral, Narayan Prasad, CMD, Mazagaon Dock Ltd said “ The IPO was at a planning stage for the last 2 years and its current closure has been extremely successful. Its indeed a matter of great honor, pride and privilege for team MDL to convey our profound thanks to all institutional investors and individual shareholders who participated in MDL’s IPO and reposed their faith in the company. We are constantly working towards sustaining our leadership position in defense ship/submarine building as well as looking actively at the Repair/Maintenance segment and export markets for adding additional revenue to the company”

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 companies Order Book stood at Rs. 540,740 million comprising of three major shipbuilding projects and two submarine projects.

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

Garden Reach Shipbuilders and Engineers 345 cr IPO was the last, Shipbuilding PSU company to list on the exchanges in 2018, it was subscribed 1.02 times. Prior to that Cochin Shipyard listed itself on the exchanges in 2017, the IPO was subscribed 76.19 times

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.