There’s a new entry in the IPOs with Rs 444 crore initial public offering (IPO). It’s the first government-owned company to hover over a primary market issue in 2020, opened for bidding today. The issue is open for subscription till Thursday. The company has an essential monopoly on building destroyers, frigates and submarines for Indian Navy and Indian Coast Guard in India. Besides, it has built ships and tugboats for commercial use.
About the company
Mazagon Dock, founded in 1934 and nationalised in 1960, is the only company building desecrators and submarines for the Navy. Most of its top management is ex-Navy, including Narayan Prasad who is the chairman and managing director of the firm.
About the issue
Under the book-building process, the government is selling 15.17 per cent in the defence PSU, to raise a limit of about Rs 444 crore. The price band for the IPO has been fixed at Rs 135-145 per equity share, with lot size at 103 shares. The company will offer up to 3,05,99,017 shares through an offer for sale which includes a reservation of 3,45,517 shares for eligible employees.
Financials
The company has posted profits continuously in the last four fiscal years. The total Income was Rs 4,274.86 crore, Rs 5,027.63 crore, Rs 5,204.67 crore and Rs 5,535.31 crore for fiscals 2017, 2018, 2019 and 2020, respectively. Similarly, the reported profit was Rs 598.26 crore, Rs 496.17 crore, Rs 532.47 crore and Rs 477.06 crore for fiscals 2017, 2018, 2019 and 2020, respectively
IPO insights :
| Issue date | 29 September 2020 |
| Issue Type | Book Built Issue |
| Issue Size | 443.69 crores |
| Lot Size | 103 shares |
| Price Band | Rs. 135 to 145 per share |
| Face Value | Rs.10 per share |
| Listing At | BSE, NSE |
| Closing Date | 01 October 2020 |