Mazagon Dock Shipbuilders IPO Opens for Subscription; Here is What You Should Know About the Firm Before Bidding
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Mazagon Dock Shipbuilders IPO opens for subscription; here is what you should know about the firm before bidding
The initial public offering of Mazagon Dock Shipbuilders opened today for subscription.
The company has fixed a price band of Rs 135-145 per share for Rs 444 crore IPO. Those who want to bid for the IPO can do so till October 1.
The issue by Mazagon Dock Shipbuilders has an offer for sale of 3,05,99,017 equity shares by the government. The proceeds from the sale of the equity shares will go to the government. The opening of the company’s IPO for sale is part of the government's divestment programme.
Mazagon Dock Shipbuilders has its headquarter in Mumbai. It was incorporated in 1934. The company is a Mini-ratna-I' defence public sector undertaking under the Ministry of Defence (MoD).
According to Economic Times, it is the leader in building frigates, submarines and destroyers for Indian Navy and Indian Coast Guard.
The company, which was nationalised in 1960, has a maximum capacity of around 40000 DWT, reported moneycontrol.com. It is one of the initial to manufacture corvettes in the country.
Mazagon Dock Shipbuilders has two divisions – shipbuilding and submarine and heavy engineering. Under shipbuilding, it is currently creating four P15 B destroyers and four P-17A stealth frigates. On the other hand, under submarine and heavy engineering, the company is currently involved in the process of delivering four Scorpene-class submarines.
It has manufactured 795 vessels till date, which include four missile boats, three submarines, Godavari class frigates, Shivalik class frigates and corvettes each, six Leander class frigates and destroyers each and 25 warships.
The firm is also planning to venture into a ship repair facility and enhancing infrastructure and manufacturing capacity. It also intends to foray into exporting its products.
According to moneycontrol.com, the firm received Rs 54,074 crore worth of orders as of July 2020 from its shipbuilding and submarine and heavy engineering divisions.
The company is expected to make progress after the central government has made an announcement to ban the import of 101 defence items. This means that the government is focusing on indigenisation and creating opportunities in the Indian defence sector.