{"id":570,"date":"2020-09-28T13:20:13","date_gmt":"2020-09-28T13:20:13","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=570"},"modified":"2020-09-28T13:20:15","modified_gmt":"2020-09-28T13:20:15","slug":"mazagon-dock-shipbuilders-ipo-public-sector-disinvestment-should-you-subscribe","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/mazagon-dock-shipbuilders-ipo-public-sector-disinvestment-should-you-subscribe\/","title":{"rendered":"Mazagon Dock Shipbuilders IPO: Public Sector Disinvestment. Should you Subscribe?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>September month was witnessing a\nflood of IPOs as Happiest Minds, Route Mobile, Computer Age Management\nServices, Chemcon Speciality Chemicals Angel Broking Limited and Unit Trust of\nIndia have opted the route of first public offer to get their listing on the\nexchanges and achieve listing gains from rising equity markets. Only an IPO\nfrom the government organization was the absence in the IPO fair month, which\nhas been filled by Mazagon Dock Shipbuilders.<\/p>\n\n\n\n<p>The company claims to operate in\ntwo divisions: Shipbuilding divisions which undertakes building and repair of\nnaval ships whereas submarine division involves heavy engineering includes\nbuilding, repairing and refitting diesel electric submarines. The company has managed\nto build 795 vessels, including 25 warships, six Leander class frigates, three\nsubmarines, three Godavari class frigates, three Shivalik class frigates, three\ncorvettes, four missile boats and six destroyers till 2020.<\/p>\n\n\n\n<p>The issue size of the IPO is 444 crores in which the Government of India is disinvesting 30,599,017 shares with Face Value of Rs. 10 and the net proceeds will not be used for any investment plan.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#_Mazagon_IPO_Details\" title=\"&nbsp;Mazagon\nIPO Details:\">&nbsp;Mazagon\nIPO Details:<\/a><\/li><li><a href=\"#About_the_Company\" title=\"About the Company:\">About the Company:<\/a><\/li><li><a href=\"#Peer_Comparison\" title=\"Peer Comparison:\">Peer Comparison:<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">&nbsp;<strong>Mazagon\nIPO Details:<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Issuer Company: Mazagon Dock Shipbuilders<\/li><li>Industry: Defence Services<\/li><li>IPO Size: 443.69 cr.<\/li><li>Price Band: 135-145<\/li><li>Issue Open Date: 29 Sep, 20<\/li><li>Issue Close Date: 01 Oct, 20<\/li><li>Listing Date: 12 Oct, 20<\/li><li>Minimum Lot Size: 103 shares<\/li><li>Employee Discount: NA<\/li><li>Face Value: 10 RS. Per share<\/li><li>Retail Allocation: 35%<\/li><li>Listing Exchange: NSE, BSE<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About the Company:<\/strong><\/h2>\n\n\n\n<p>Mazagon Dock Shipbuilders Limited is a Defence Public Sector\nUndertaking under ministry of Defence. It is one of the India\u2019s leading\nshipyards with a capacity to meet requirements of the Indian Navy. Mazagaon\ndock was first constructed in 1774 as a small dry dock, which was incorporated\nas a public limited company in 1934, before being taken over by Govt. of India\nin 1960.<\/p>\n\n\n\n<p>The shipyard builds warships and conventional submarines at\nits facilities in Mumbai and Nhava. Major customers for the shipyard include\nIndian Navy and Coast Guard.The\ncompany claims to be the India\u2019s only shipyard that builds destroyers and\nconventional submarines for the Indian Navy. The company is one of the ship\nbuilders for P17-A project for building next generation guided missile stealth\nfrigates through collaboration with Fincantieri, Italy. The company has dropped\nthe repair work of ships since 2016.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Peer Comparison:<\/strong><\/h2>\n\n\n\n<p>Indian shipbuilding business is not restricted in the hands\nof public sector only but many private players have been involved in building and\nrepairing shipbuilding and submarine division. In the public sector space, the\ncompany will face competition from Garden Shipyard, Goa shipyard, Cochin\nshipyard and Hindustan shipyard out of which Garden shipyard and Cochin\nshipyard are listed while in the private sector, Reliance Defence and Engineering\nLimited, L&amp;T Shipyard, Bharti Shipyard, ABG Shipyard and Tebma Shipyard are\ninvolved in the similar business. <\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 3,032<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"570\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">1    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>September month was witnessing a flood of IPOs as Happiest Minds, Route Mobile, Computer Age Management Services, Chemcon Speciality Chemicals Angel Broking Limited and Unit [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/mazagon-dock-shipbuilders-ipo-public-sector-disinvestment-should-you-subscribe\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":571,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,2],"tags":[],"class_list":["post-570","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo","category-stock-market"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=570"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/570\/revisions"}],"predecessor-version":[{"id":572,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/570\/revisions\/572"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/571"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}