The Rs 444-crore share sale of Mazagon Dock Shipbuilders was subscribed 157.4 times subscription between September 29-October 1. At a price range of Rs 135-145 per share, the public issue has received bids for 481.6 crore equity shares against offer size of 3.06 crore equity shares, subscription data available on the exchanges showed.
Shares of the company are proposed to be listed on BSE and NSE on October 12. The allotment for the shares is expected to be known by October 7, as per the red herring prospectus. Those who had bid for the issue can check the subscription status on the online portal of Alankit Assignments, the registrar to the issue.
Here's how to check Mazagon Dock Shipbuilders IPO allotment status
On Alankit Assignments
- Go to the online portal: ipo.alankit.com
-Click on the drop-down menu and select the company name as Mazagon Dock Shipbuilders in the drop-down menu of the investor's centre section.
- Enter your Permanent Account Numbers (PAN) or application number or Client ID.
- After entering the given captcha code, investors can click on submit button and view their allotment status.
Applicants can also check their IPO allotment status on the BSE website
-Select Equity and then from the dropdown, select issue name "Mazagon Dock Shipbuilders"
-Enter your Permanent Account Numbers (PAN) or application number and click Search
The IPO of the state-owned defence company comprised of 3,05,99,017 shares through an offer for sale (OFS), as the government which has a 100 per cent stake in the company offloaded 15.17 per cent stake.
Lead managers of the IPO are Axis Capital, DAM Capital Advisors Ltd (Formerly IDFC Securities), Edelweiss Financial Services, JM Financial Consultants and Yes Securities.
Here's what analysts said about the IPO:
At the upper price band of Rs 145, MDSL is available at a P/E of 6.1 times which is at a significant discount to its peers. Considering strong technological & execution capabilities, healthy order book and attractive dividend yield, we assign a subscribe rating for this IPO, Geojit Financial said.
In terms of valuations, the pre-issue P/E works out to 6.1x FY20 earnings (at the upper end of the issue price band), which is lower vs. peers like Garden Reach Shipbuilders and Cochin Shipyard (trading at 12.2x and 6.6x of its FY20 earnings, respectively). Further, MDSL has a healthy ROE of 16% coupled with the highest dividend yield (7.4%) and higher cash on balance sheet among its peers. Hence, considering the above positive factors, we recommend SUBSCRIBE to the issue with a long-term horizon.
At the higher price band of Rs 145, the stock is valued at 6.7x FY20 earnings of Rs 21.4, which looks quite attractive considering its healthy order book, long-term visibility of topline growth, competitive edge, profitability, return ratios and dividend payout policy. We recommend investors to SUBSCRIBE with a target of Rs 250 over a time horizon of 6 months.
Mazagon Dock Shipbuilders Ltd (MDSL) is a leading defence public sector undertaking shipyard under the Ministry of Defence (MoD). Mazagon Dock is primarily engaged in constructing and repairing warships and submarines for MoD and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial clients.Share Market News Live: Sensex rises 250 points, Nifty at 11,490; TCS, HCL Tech, Maruti top performers
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