Mazagon Dock Shipbuilders IPO: 10 key things you should know
The lady public issue of Mumbai-settled Mazagon Dock Shipbuilders is set to open for membership on September 29. The first sale of stock, the eleventh IPO this year, will close on October 1 and the posting on BSE and NSE is normal on October 12.
The book running lead chiefs to the issue are Yes Securities (India), Axis Capital, Edelweiss Financial Services, IDFC Securities and JM Financial.
Here are 10 key things you should know before buying in the issue:
1) Public Issue
The IPO comprises a whole proposal available to be purchased of 3,05,99,017 value shares by the Ministry of Defense, Government of India.
The issue incorporates a representative reservation part of 3,45,517 value shares. The all out offer will comprise 15.17 percent of the post issue settled up value.
One can offer for at least 103 value shares and in the products of 103 from that point.
2) Price Band
Mazagon Dock, in meeting with trader brokers, has fixed the IPO value band at Rs 135-145 for each value share.
3) Funds Raising
The organization means to raise Rs 413 crore at the lower value band and almost Rs 444 crore at the upper value band.
4) Objects of Issue
The objects of the offer are to do the disinvestment of 3,05,99,017 value shares by the legislature and accomplish the advantages of posting the offers on the stock trades. That implies the organization won't get any returns from the offer and these will go to the selling investor.
5) Company Profile
State-claimed Mazagon Dock is a safeguard public area undertaking shipyard under the Department of Defense Production, Ministry of Defense, with a most extreme shipbuilding and submarine limit of 40,000 DWT, a CRISIL Report says. It is occupied with the development and fix of warships and submarines for the administration for use by the Indian Navy and different vessels for business customers.
The organization was presented the 'Small scale Ratna-I' status in 2006. It is India's just shipyard to have constructed destroyers and regular submarines for the Indian Navy. It is likewise one of the underlying shipyards to make Corvettes (Veer and Khukri Class) in India, the CRISIL report says.
The business divisions wherein the organization works are shipbuilding (which incorporates the structure and fix of maritime ships), and submarine and weighty designing (which incorporates building, fix and refits of diesel electric submarines). The organization is building four P-15 B destroyers and four P-17A secrecy frigates and undertaking fix and refit of a boat for the MoD for use by the Indian Navy.
Its shipyard is situated on the west shore of India, on the ocean course interfacing Europe, West Asia and the Pacific Rim, a bustling worldwide sea course.
6) Competitive Strengths
a) Only open part protection shipyard building ordinary submarines
b) World-class foundation equipped for serving the necessities of the Ministry of Defence
c) Location of offices advances nearer relationship with merchants and customers
d) Increase in indigenisation of vessels and usage of the 'Make in India' programme e) Established history, in a solid monetary position and a solid request book
f) Experienced board and senior supervisory group and handily prepared workforce
7) Business Strategies
In its distraction outline, the organization said its goal is to upgrade market position by growing capacities, gaining by circumstances, both in homegrown and worldwide business sectors, and to improve intensity.
a) Export of products
b) Focus on transport fix
c) Augmentation of framework and improving assembling limit.
8) Order Book
Its request book for shipbuilding and submarines and substantial designing was Rs 54,074 crore, including three significant shipbuilding activities and two submarine ventures starting at July 2020.
9) Financials
Mazagon Dock posted a 7.9 percent YoY development in income at Rs 4,977.65 crore for FY20, 3.2 percent ascend in FY19 and 27 percent development in FY18. It has reliably detailed benefits in the last four budgetary years yet there has been instability as the bottomline fell 10.7 percent YoY to Rs 477.06 crore in FY20 against 7.3 percent ascend in FY19 and 17 percent decrease in FY18.
10) Management Team
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