Mazagon Dock Shipbuilders

IPO Details

Below are key details about the IPO of the Company

• IPO Start Date – 29th Sep 2020
• IPO End Date – 01st Oct 2020
• IPO Price – INR 135 – 145
• IPO Lot Size – 103
• Minimum investment required – INR 14,935

English Video

Hindi Video

Business Details

Mazagon Dock Shipbuilders is the third Company to get listed in the space. The other two Companies to be listed in the space are Cochin Shipbuilders and Garden Reach Shipbuilders.

It is one of the largest ship building yards in India. The products from the Company can be divided into two parts which is further sub divided into different categories as listed below.

• Ship Building
  • Naval Ships
  • Merchant Ships
• Sub Marine

I have listed the ships and sun marines created by this Company just to give you glimpse on kind of work it has performed over the years.

• Naval Ships
  • Corvettes
  • Nilgiri
  • Missile Boats
  • Godavari Class Frigates
  • Patrol Vessels
  • Destroyer
  • Leander Class Frigates
• Merchant Ships
  • Trailing Section Hopper Dredger
  • General Cargo Vessel
  • Multipurpose Support Vessel
  • Offshore supply vessel
  • Special Trade passenger cum cargo vessel
  • 45 T Bollard Pull Voith Tug
  • BOP Vessel
• Sub Marine
  • INS Shalki
  • INS Shankul
  • Scorpene Submarine

As of now, it has built 795 vessels, including 25 warships, 4 missile boats, 3 submarines, 6 Leander class frigates, 3 Godavari class frigates, 3 Shivalik class frigates, 3 corvettes, and 6 destroyers.

Financial Snapshot

Below are key financials of the Company for year ending 2020

• Total Income – 4978
• Profit for year – 477

IPO Subscription Status

Below is IPO Subscription status of the Company. I will be updating this section with time.

• QIB – 89.71 times
• NII – 678.87 times
• RII – 34.50 times
• Employee – 3.91 times
• Total Subscription is 157.01 times

Below is meaning of the Key terms used above

• QIB is (Institutes or Mutual Funds like HDFC AMC etc)
• NII is (People bidding for more than 2 lakhs in IPO application)
• RII is (People bidding for less than 2 lakhs)
• Employee and Others are Reserved Quota Investors.

My Opinion

This is the third Company to get listed in this space. The Company creates Defense products as well. With recent Defense policy changes and focus of Government on pushing Make in India and Atmanirbhar Bharat (making the products within India) Company does have positive background before IPO launch.

These are good development for Defense sector Companies and also manufacturing Companies as well. There is lot of scope in exporting the products overseas in near future which will propel future growth but as of now the internal demand meeting will be in focus.

It will be interesting to see how well the IPO receives response from different investors.