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(04 Apr 2025, 11:59)

Mazagon Dock slides as OFS begins; promoter to sell 4.83% stake

Mazagon Dock Shipbuilders dropped 6.31% to Rs 2,562.90 after the Government of India announced its proposal to sell 4.83% stake in the company through an offer for sale (OFS) at a floor price of Rs 2,525 per share.


Through OFS, Government of India proposes to sell up to 1,14,10,366 equity shares, representing a 2.83% stake, with an option to sell additional 2% stake or 80,67,600 equity shares in case of over subscription.

The floor price of the offer has been set at Rs 2,525 apiece, a 7.69% discount to the stock's closing price of Rs 2,735.41 recorded on Thursday, 3 April 2025.

The Government of India held 84.83% stake in Mazagon Dock Shipbuilders as of 31st December 2024.

A minimum of 25% of the offer has been reserved for mutual funds and insurance companies, while 10% for retail investors.

The OFS opened on 4 April 2025, which is the T-day where only retail investors can bid for the shares. On 7 April 2025, which is T+1 day, the OFS will be accessible for retail investors, employees, and for non retail investors those who choose to carry forward their un-allotted bids from T-day.

On Day 1 (T-day), as of 11:18 IST, the OFS received subscription for 4,54,487 shares. It was subscribed 4.42% on the base of non retail offer size of 1,02,69,329 shares.

Mazagon Dock Shipbuilders is principally engaged in building and repairing ships, submarines, various types of vessels, and related engineering products for its customers.

The company’s consolidated net profit surged 28.75% to Rs 807.04 crore on a 33.06% jump in revenue from operations to Rs 3,143.62 crore in Q3 FY25 over Q3 FY24.

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