Mazagon Dock
Mainboard₹444 Cr issue
+49.14%
Listing gain over issue price
Issue size
₹444 Cr
1 lot at cut-off
₹14,935
Lot size
103shares
Open
29 Sep 2020
Close
01 Oct 2020
Allotment
07 Oct 2020
Listing
12 Oct 2020
Listing performance
Issue price
₹145
Listed at
₹216.25
Listing-day close
₹173
Latest price
—
Listing gain
+49.14%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Sep 2020 – 01 Oct 2020
- Listing date
- 12 Oct 2020
- Face value
- ₹10 per share
- Issue price
- ₹145 per share
- Lot size
- 103 shares
- Total issue size
- ₹444 Cr
- Promoter holding
- 100.00% → 85.00% pre-issue → post-issue
- ISIN
- INE249Z01012
- Registrar
- Alankit Assignments Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- Dockyard Road, Mazagon,, Mumbai - 400010, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
Application size
Minimum 103 shares per lot, in multiples, at ₹145
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 103 | ₹14,935 |
| Retail (max) | 13 | 1,339 | ₹1,94,155 |
| S-HNI (min) | 14 | 1,442 | ₹2,09,090 |
| S-HNI (max) | 66 | 6,798 | ₹9,85,710 |
| B-HNI (min) | 67 | 6,901 | ₹10,00,645 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
₹145 per share
| Metric | Pre-issue | Post-issue |
|---|
About Mazagon Dock
Mazagon Dock Shipbuilders Limited (MDL) is a defence public sector undertaking under the Department of Defence Production, Ministry of Defence, incorporated in 1934. It operates two primary business divisions: shipbuilding and submarine/heavy engineering. The company has a maximum shipbuilding and submarine capacity of 40,000 DWT. It constructs and repairs warships, submarines, and commercial vessels, deriving 100% of revenues from the Ministry of Defence. The Order Book as of July 31, 2020 comprises four P-15B destroyers, four P-17A stealth frigates, repair and refit of a ship, four Scorpene class submarines, and one medium refit and life certification of a submarine. The company operates from a single location in Mumbai, Maharashtra.
Company Analysis
from RHPMazagon Dock Shipbuilders Limited is a defence public sector undertaking engaged in the construction and repair of warships, submarines, and commercial vessels for the Indian Navy and other clients.
Mazagon Dock Shipbuilders Limited (MDL) is a defence public sector undertaking under the Department of Defence Production, Ministry of Defence, incorporated in 1934. It operates two primary business divisions: shipbuilding and submarine/heavy engineering. The company has a maximum shipbuilding and submarine capacity of 40,000 DWT. It constructs and repairs warships, submarines, and commercial vessels, deriving 100% of revenues from the Ministry of Defence. The Order Book as of July 31, 2020 comprises four P-15B destroyers, four P-17A stealth frigates, repair and refit of a ship, four Scorpene class submarines, and one medium refit and life certification of a submarine. The company operates from a single location in Mumbai, Maharashtra.
defence shipbuildingsubmarine constructionship repair and refitheavy engineering
Objects of the Issue
- Disinvestment by the Selling Shareholder and achievement of benefits of listing on stock exchanges ₹4,436.86 million p.17
- Disinvestment by the Selling Shareholder (Government of India through Ministry of Defence) to achieve the benefits of listing the Equity Shares on the Stock Exchanges p.87
- Not stated in this document section
- Offer for Sale - no proceeds to the company p.359
Issue Structure
- Total Issue
- 30,599,017 Equity Shares (subject to finalization of basis of allotment)
- Fresh Issue
- Nil (100% Offer for Sale)
- Offer for Sale
- 30,599,017 Equity Shares by the President of India, acting through the Ministry of Defence
- Price Band
- ₹135 to ₹145 per Equity Share
- Lot Size
- 103 Equity Shares (Bid Lot)
- Face Value
- ₹10 per Equity Share
Business Model
MDL earns revenue through fixed-price and variable-component contracts for the design, construction, repair, and refit of warships and submarines for the Indian Navy and Ministry of Defence. Revenue is recognised upon achievement of project milestones. The company also generates revenue from commercial shipbuilding and ship repair activities.
Business Segments
Construction and repair of warships and submarines for the Indian Navy and commercial clients
Design, fabrication, and construction of conventional submarines, destroyers, stealth frigates, and corvettes for the Indian Navy and Indian Coast Guard. MDL has increased warship capacity from eight to ten vessels and submarine capacity from six to eleven vessels post-modernization.
Ship repairing services for defence and commercial vessels.
Building and repair of naval ships, including P-15 B destroyers, P-17A stealth frigates, and repair and refit of ships for the Ministry of Defence for use by the Indian Navy
Building, repair and refits of diesel electric submarines, including Scorpene class submarines under transfer of technology agreement with Naval Group, and medium refit and life certification of submarines
Construction of ships and submarines for defense and commercial sectors
Supply of base and depot spares for naval vessels
Repair and maintenance services for ships
Building and repair of naval ships. Currently building four P-15 B destroyers and four P-17A stealth frigates and undertaking repair and refit of a ship for the MoD for use by the Indian Navy.
Building, repair and refits of diesel electric submarines. Currently building/delivering four Scorpene class submarines under a transfer of technology agreement with Naval Group as well as one medium refit and life certification of a submarine for the MoD for use by the Indian Navy.
Design and construction of naval vessels for the Indian Navy
Design, construction and maintenance of submarines and heavy engineering for the Indian Navy
SWOT Analysis
Strengths
- • Defence DPSU with established shipbuilding and submarine capacity(p.17)
- • Secured order book from Ministry of Defence(p.25)
- • Longstanding historical presence as defence contractor(p.1)
- • Established infrastructure and facilities(p.33)
- • Only public sector defence shipyard constructing conventional submarines(p.89)
- • World class infrastructure post-modernisation with enhanced capacity(p.106)
- • Established track record with strong Order Book(p.89)
- • Experienced board and senior management team with skilled trained workforce(p.89)
- • Strategic location promoting vendor and customer association(p.89)
- • Only public sector defence shipyard constructing conventional submarines(p.129)
- • World-class infrastructure with advanced facilities(p.129)
- • Strategic geographic location facilitating vendor and customer coordination(p.129)
- • Increased indigenisation reducing import dependence(p.130)
- • Consistent profitability and strong order book(p.130)
- • Experienced workforce with long tenure and specialized skills(p.130)
- • Government backing and established market position(p.181)
- • Diversified revenue streams from shipbuilding, repair and services(p.203)
- • Significant asset base and productive capacity(p.222)
- • Consistent profitability and cash generation(p.194)
- • Strong balance sheet with no debt(p.215)
Weaknesses
- • Non-compliance with woman director requirement under Companies Act(p.21)
- • Limited infrastructure capacity constrains expansion(p.30)
- • Dependence on MbPT for critical operational services(p.37)
- • History of negative operating cash flows(p.43)
- • Land ownership and lease complications(p.35)
- • Missing historical corporate records(p.38)
- • Lack of comprehensive cost monitoring mechanism for yard efforts(p.46)
- • Risk of inaccurate hindrance register records affecting liquidated damages claims(p.46)
- • Lack of regular training and safety programmes for contractual personnel(p.47)
- • Related party transactions may not achieve favourable terms(p.45)
- • Conflict of interest with Group Company due to absence of non-compete agreements(p.45)
- • Government can expropriate critical technology for national security(p.45)
- • Dependence on Ministry of Defence as primary customer(p.131)
- • High reliance on fixed-price shipbuilding contracts(p.134)
- • Long gestation periods for shipbuilding contracts(p.131)
- • Exposure to liquidated damages for delivery delays(p.134)
- • Non-compliance with SEBI Listing Regulations board composition requirements(p.172)
- • Missing mandatory woman director on board(p.172)
- • Committee composition not fully compliant with regulations(p.172)
- • Pending registration of certain leasehold properties(p.188)
- • Large provision for liquidated damages(p.256)
- • Multiple ongoing labour disputes and litigation from workers' unions(p.334)
- • Substantial outstanding dues to suppliers and contractors(p.336)
- • Material creditor concentration risk(p.336)
- • Significant litigation involving claims from vendors for contract disputes(p.334)
- • Internal fraud and theft incidents causing capital loss(p.335)
- • Corruption allegations involving senior management(p.335)
- • Expired environmental and regulatory approvals(p.339)
- • Unresolved project clearances blocking modernization initiatives(p.339)
Opportunities
- • Greenfield shipyard expansion at Nhava, Navi Mumbai(p.30)
- • Export of products to international markets(p.43)
- • Submarine launch facilities planned completion(p.31)
- • Potential Project 75-I submarine construction contracts(p.24)
- • Defence shipbuilding order book to grow 8-10% CAGR over next 5 years(p.112)
- • Indian Navy and Coast Guard plan fleets of 200 ships each till 2020-21(p.113)
- • Increase in indigenisation and Make in India campaign implementation(p.89)
- • Expected delivery of key Navy orders P-15-B, P17-A over next five years(p.113)
- • Government policy providing financial assistance to shipbuilders(p.104)
- • Expansion into international markets for defence and commercial products(p.131)
- • Growth in ship repair and refit services(p.131)
- • Development of greenfield shipyard at Nhava for expanded capacity(p.131)
- • Government support for Make in India and defence indigenisation(p.116)
- • Infrastructure status enabling access to long-term financing at competitive rates(p.116)
- • Expansion of defence shipbuilding capacity and capabilities(p.207)
- • Growth in B&D spares and ship repair business(p.259)
- • Leverage government funding for infrastructure development(p.257)
- • Submarine and advanced vessel construction pipeline(p.260)
Threats
- • Shift towards competitive bidding reducing nomination-based order awards(p.24)
- • Increased FDI in defence sector creating foreign competition(p.24)
- • Dependence on MoD budget allocation and potential funding cuts(p.26)
- • Liquidated damages obligations on delayed contracts(p.25)
- • COVID-19 pandemic disruption of operations and supply chains(p.22)
- • Exposure to foreign sanctions through technical collaborations(p.28)
- • Delays in defence procurement procedures and equipment specifications(p.29)
- • Currency exchange rate fluctuation risks on foreign procurement(p.45)
- • Environmental compliance risks and potential penalties(p.30)
- • Risk of cost overruns on fixed price contracts due to weak cost controls(p.46)
- • COVID-19 pandemic impact on business operations and workforce(p.48)
- • Natural disasters, acts of war and political unrest can disrupt operations(p.49)
- • Competition law in India could adversely affect business(p.48)
- • Dependence on Indian economy which is subject to multiple macro risks(p.49)
- • Government can issue directives requiring non-profit maximizing actions(p.45)
- • Intensifying competition from foreign shipyards(p.115)
- • Weak global shipping industry and cancellation of fleet plans(p.115)
- • Introduction of competitive bidding for defence contracts(p.139)
- • Lack of well-developed ancillary industry causing delays(p.115)
- • Poor execution track record of Indian shipyards and cost/time overruns(p.115)
- • Impact of COVID-19 on business operations and capacity utilization(p.143)
- • Project cost overruns and liquidated damages exposure(p.256)
- • Dependence on Indian Navy as primary customer(p.260)
- • Conflict of interest with group company in shipbuilding(p.182)
- • Lease renewal pressure from Mumbai Port Trust(p.242)
- • COVID-19 related project delays and cost impacts(p.189)
- • Contractual disputes with major government vendors impacting cash flow(p.336)
- • Risk of loss on employee pension fund investments in failed financial institutions(p.336)
- • Cargo damage and shipping liability exposure(p.335)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| The President of India, acting through the Ministry of Defence, Government of India | Promoter | 100% | 84.83% |
| The President of India through Ministry of Defence | Promoter | 100% | 84.83% |
| Government of India | Promoter | 100% | — |
| President of India | Promoter | 100% | 84.83% |
| Ministry of Defence, Government of India | Promoter (wholly-owned by GoI) | 100% | — |
| President of India, acting through the Ministry of Defence | Promoter/Selling Shareholder | 100% | 80% |
Leadership
Narayan Prasad · Chairman and Managing Director
Jasbir Singh · Director (Submarine & Heavy Engineering)
Sanjeev Singhal · Director (Finance)
T.V. Thomas · Director (Corporate Planning and Personnel)
Anil K. Saxena · Director (Shipbuilding)
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Mazagon Dock IPO FAQs
What is the lot size of Mazagon Dock IPO?
The minimum lot size of Mazagon Dock IPO is 103 shares. One lot costs ₹14,935 at the cut-off price.
When does Mazagon Dock IPO open and close?
Mazagon Dock IPO opened for subscription on 29 Sep 2020 and closed on 01 Oct 2020.
What is the listing date of Mazagon Dock IPO?
Mazagon Dock IPO listed on 12 Oct 2020.