InvestorQ : What are the details of Mazagaon Dock Shipbuilders(MDS) IPO & what's makes it attractive to subscribe?
IPO
Dawn Cherian made post

What are the details of Mazagaon Dock Shipbuilders(MDS) IPO & what's makes it attractive to subscribe?

Answer
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Dhwani Mehta answered.
3 weeks ago


The initial public offer is for 3.06cr shares through an offer for sale (OFS). The offer is expected to raise about Rs444 crore at the upper end of the price band. The price band for the issue has been fixed at Rs135-145 per share. IPO will close for subscription on October 1.

The lot size in Mazagon Dock Shipbuilders IPO is 103 shares and Alankit Assignments Ltd is the registrar of this issue. The government is selling shares constituting 15.17% of Mazagon Dock Shipbuilder's pre-offer paid-up equity share capital in this issue. YES Securities, Axis Capital, Edelweiss Financial, IDFC Securities, and JM Financial are the managers to the offer.

MDL being a highly competent public shipyard stands to benefit from the Government’s impetus on a higher level of indigenization in defence equipment. MDL is one of the few shipyards under the MoD that only makes warships at the moment and is the only shipyard to have built destroyers and conventional submarines for the Indian Navy.

The company has a virtual monopoly on building destroyers, frigates, and submarines for the Indian Navy and Indian Coast Guard in India. Besides, it has built ships and tugboats for commercial use. MDL’s order book is likely to be executable over 6-7 years which even without considering order inflows provides strong revenue visibility. It has sufficient capacity in place and is exploring additional development which can help cater to an uptick in orders.

The IPO is already fully subscribed on the first day itself.