The initial public offering (IPO) of state-owned Mazagon Dock Shipbuilders is scheduled to open on Tuesday. The issue will remain open for three days. The offering is of 3,05,99,017 shares through an offer for sale (OFS). The price band for the issue has been fixed at Rs 135-145 per share.
The tentative allotment date of the firm's shares is October 7 and the probable listing date is October 12. The bid size or lot size of Mazagon IPO is 103 equity shares and multiples of 103 shares thereafter.
The portion for retail investors is fixed at 35% of the net offer. QIB quota is 50 per cent. The quota of non-institutional investors at 15 per cent. The promoter shareholding will fall from 100 per cent to 84.8 per cent after listing.
The offer is expected to raise about Rs 444 crore at the upper end of the price band and at the lower range about Rs 413 crore. Shares of the company are proposed to be listed on BSE and NSE.
YES Securities, Axis Capital, Edelweiss Financial, IDFC Securities and JM Financial are the managers to the offer. The company is engaged in construction and repair of warships and submarines for use by the Indian Navy and other vessels for commercial clients, according to the red herring prospectus.
The profit of the company stood at Rs 5,982.58 million, Rs 4,961.73 million, Rs 5,324.74 million and Rs 4,770.59 million for fiscals 2017, 2018, 2019 and 2020, respectively.