India’s shipbuilding and allied services sector, valued at $1.12 billion in 2022, is projected to grow to $8.12 billion by 2033 at a 60 percent CAGR. Despite holding just 0.06 percent of the global market, government initiatives like the Rs 250 billion Maritime Development Fund aim to boost domestic capacity and global competitiveness.
Price movement
With a market capitalization of Rs 93,398.61 crore, the shares of Mazagon Dock Shipbuilders Ltd were trading at Rs 2,315.40 per share, decreasing around 9 percent as compared to the previous closing price of Rs 2,541.20 apiece.
Matter Explanation
The shares of Mazagon Dock Shipbuilders Ltd have plummeted 15.40 percent till today after the Government of India announced to sell up to a 4.83 percent stake in the company via an offer-for-sale (OFS) on April 4 and April 7. The OFS includes a base issue size of 2.83 percent and a greenshoe option of 2 percent. The floor price for the offer will be Rs 2,525 per share.
Additionally, an oversubscription option will extend to 47.69 lakh shares (1.18 percent stake) in the offer-for-sale issue of Mazagon Dock on April 7. This is in addition to the base issue size of 1.14 crore shares (2.83 percent stake). Retail investors will get a chance to bid for the offer-for-sale issue on April 7.
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Order Book and Future Orders
As of December 31, 2024, the company holds an order book worth Rs 34,787 crore. It anticipates orders for three P-75 submarines by March 2025. With MDL as the sole technically qualified bidder for P-75(I), commercial discussions are expected to begin soon for FY26 placement.
Capex Plans
The company has outlined a Rs 5,000 crore CAPEX plan over the next 4–5 years, including the development of adjacent land with a graving dry dock and expansion of the Nhava Yard. For FY25–26, the initial investment is projected at approximately Rs 500 crore.
Company Overview
Mazagon Dock Shipbuilders Limited is engaged in the building and repairing of ships, submarines, various types of vessels, and related engineering products. The Company is into the construction of warships and submarines. It is also engaged in the production of defense equipment.
Written by Abhishek Singh
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