Shares of Mazagon Dock Shipbuilders Ltd dropped more than 6% on Friday, 4 April, following the government’s announcement of an offer to sell a 4.83% stake in the state-run defence company.
According to a stock market announcement, the Indian government would sell up to 11.39 million equity shares, or 2.83% of its holding, to non-retail investors on 4 April and to employees and retail investors on 7 April. By exercising the oversubscription option, the state-run firm can sell an extra 8.06 million shares, or 2% of the total, increasing the stake sale to 4.83%.
At the end of the December quarter, the government-owned 84.83% of the company, according to BSE figures.
Furthermore, 50,000 equity shares, or 0.26%stake, may be offered to eligible personnel in accordance with the terms and conditions outlined in the OFS guidelines, subject to permission from the appropriate government, the defence business stated. The offer-for-sale floor price is Rs 2,525 per share, representing a 7.7% decrease from Thursday’s closing price.
Mazagon Dock’s stock dropped as high as 7.14% to Rs 2,542 per share, the most intraday loss since 18 February this year.
In the previous fiscal year, Mazagon Dock was the best-performing firm, increasing by an incredible 189.2%, while the Nifty50 had a 5.7% gain.
The company’s primary activity is building and repairing ships, submarines, and other types of watercraft for its customers. It also manufactures related engineering products.
Mazagon Dock’s consolidated net profit for the third quarter (Q3) of the fiscal year 2024-25 (FY25) increased by 30% to Rs 768.22 crore from Rs 591.54 crore in the same period the previous year.
At 1:52 pm, the shares of Mazagon Dock were trading 6.74% lower at Rs 2,553.15 on NSE.
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