Mazagon Dock set for IPO

State-owned Mazagon Dock Shipbuilders Limited (MDL) launches an initial public offering (IPO) on 29 September through which the Indian government will divest a 15% stake in the Mumbai-based company.

MDL said it expects to raise up to INR4.44 billion (USD60.2 million) through the share listing, which features more than 30 million shares selling at between INR135 and INR145 each. Funds generated by the IPO, which closes on 1 October, will be collected by the state. The Indian government announced the IPO plan in December 2019.

In fiscal year 2019–20 MDL recorded a turnover of INR55.66 billion and pre-tax profit of INR7.66 billion. These represented a year-on-year increase of 6% and a decline of 8% respectively. Its orderbook in late 2019 was INR521 billion, positioning MDL has India’s largest naval shipbuilder.

Its major projects include the construction of four Project 15B guided-missile destroyers, four Project 17A-class frigates, and five Kalvari-class submarines, all for the Indian Navy.

MDL is the latest state-owned defence enterprise in India to be the subject of divestment. In the past two years, the government has also launched IPOs in companies including Garden Reach Shipbuilders & Engineers (GRSE), defence metals manufacturer Mishra Dhatu Nigam (Midhani), Hindustan Aeronautics Limited (HAL), and missile manufacturer Bharat Dynamics Limited (BDL).