Listing at 216. Excellent listing gain.
Mazagon Dock Shipbuilders IPO
(i) The Company is owned by the Government of India and is operating under the administrative control of the Ministry of Defence, Department of Defence Production. The Company was conferred the ‘Mini-Ratna’ status in 2006, by the Department of Public Enterprises.
(ii)They are a defense public sector undertaking shipyard under the Department of Defence Production, MoD with a maximum shipbuilding and submarine capacity of 40,000 DWT engaged in the construction and repair of warships and submarines for the MoD for use by the Indian Navy and other vessels for a commercial client.
(iii) The business divisions in which the company operates are:
The shipbuilding division includes the building and repair of naval ships. They are 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.
(b) Submarine and heavy engineering
The submarine and heavy engineering division include building, repair, and refits of diesel-electric submarines. They are currently building/ in the process of 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.
Since 1960, they have built a total of 795 vessels including 25 warships, from advanced destroyers to missile boats and three submarines. They have also delivered cargo ships, passenger ships, supply vessels, multi-purpose support vessels, water tankers, tugs, dredgers, fishing travelers, barges, and border outposts for various customers in India as well as abroad.
The Company has posted profits continuously in the last four Fiscals.
1. The total income was ₹4274 Crores, ₹5027 Crores, ₹5204 Crores, and ₹5535 Crores for Fiscals 2017, 2018, 2019, and 2020 respectively.
2. The profit for the year was ₹598 Crores, ₹496 Crores, ₹532 Crores, and ₹477 Crores for Fiscals 2017, 2018, 2019, and 2020 respectively.
Objects of the Mazagon Dock Shipbuilders IPO:
Mazagon Dock Shipbuilders IPO Details:
|Open Date:||Sep 29 2020|
|Close Date:||Oct 01 2020|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Building|
|Issue Size:||413-444 Cr.|
|Lot Size:||103 Shares|
|Issue Price:||₹ 135-145 Per Equity Share|
|Listing Date:||Oct 12 2020|
Promoters And Management:
Financials of Mazagon Dock Shipbuilders IPO:
|Cost of Material||21,400||26,928||25,571||25,031|
|Base and Depot spare||348||917||6,080||3,622|
|Profit before tax||8,309||6,507||7,785||7,358|
|Share of Associates||554||1,026||620||933|
|EPS in Rs||30||23||25||23|
Comparison With Peers:
Recommendation on Mazagon Dock Shipbuilders IPO:
Lead Manager of Mazagon Dock Shipbuilders IPO:
Registrar of Mazagon Dock Shipbuilders IPO:
Discussion on Mazagon Dock Shipbuilders IPO:
All the best for tomorrow’s listing.
*MAZAGON DOCK IPO LISTING*
Date : *12/10/2020*
Issue Price : *Rs.145/-*
Mkt. Lot : *103 shares*
Scrip Code : *543237*
Symbol : *MAZDOCK*
ISIN No. : *INE249Z01012*
Can I stay long time investment
exit on listing
Applied for 5 lot’s allotted zero but amount was still blocked!
Applied 3. Allotted 01
Be careful on Monday. Lot of selling pressure will come from HNIs.
HNI Costing is 150+ and the current GMP is 100. HNIs are in for a big loss. So, they will sell on listing.
Applied 1+1 Lot.
0 out of 5
As per currrnt GMP
Retail in profit (if allotted)
But HNI in loss
Hungama possible in Mazagon
0/4 🤣 🤣
I think some fraud is done by nse in ipo listing… Applied 10 and got 1 ..
allotment out..applied 2 got 0 ..and losing streak continues..and got uti which is supposed to have negative listing..destiny
Allotment is still not out!
Should we invest
Can I know on yr site regarding allotment of shares of IPOs?
NO REGISTRAR is giving the BASIS OF ALLOTMENT to any issue (IPO)
Should we apply considering subscription figure till now?
QIB: 0.04 Times
HNI: 0.78 Times
Retail: 5.63 Times
Total: 2.09 Times
Apply with full force. 100% listing gain is expected
The company in FY19-20 did a buyback of 2.25 Crores shares from Govt of India at Rs. 123 per share. Thereby, gave Govt of India, Rs. 277 Crores.
1. Total shares offered in the IPO = 30,599,017
2. Employee Reservation Portion = 345,517
3. Total remaining for Public = 30,253,500
4. 50% QIB, 15% HNIs and 35% Retail.
1. Revenue = 5535 Crores.
2. PAT = 458 Crores.
3. Shares = 201,690,000
4. EPS = 22.70
5. P/E = 6
The road ahead is tough for Mazagon Dock.
1. The MOD has recently released a new draft on Defence Production Policy 2018. The FDI limit has also recently been increased to 74% via the automatic route.
2. The aim of these policy changes is to make the Defence sector competitive under the “Make in India” initiative. This will allows private players to bid for the defense projects.
3. Until this, Mazagon Dockyard was getting a significant portion of the order book on a nomination
basis. However, from hereon, to get new projects they have to go for a competitive bidding process.
1. As on 30.07.2020, the company has a strong order book of 54000 Crores. These projects are awarded by the Ministry of Defence.
2. Order Book currently comprises of building and construction of four ‘P-15B’ destroyers, four ‘P-17A’
stealth frigates, repair and refit of a ship, four Scorpene-class submarines, and undertaking the medium refit and life certification of a submarine for the Indian Navy.
Current GMP is 125. Strong buying seen.
will update shortly
Listing gain any
1. Total IPO Size= 30,599,017 EQUITY SHARES
2. 345,517 Equity shares have been reserved for employees.
There is change in, Ipo dates of Mazagon Docks it’s now, Approx 24.9- 26.9
MW sir, please correct the Date and Year in the page. As it is showing 01 Sep 2018.
Mazagon Dockyard at present building six Scorpene-class submarines with technology transfer from the French shipbuilding behemoth Naval Group, formerly known as DCNS, under the P75 programme. The first submarine, out of the six, is scheduled to be delivered to the Navy next month. Deliveries of all the submarines under the Scorpene project is expected to be completed by 2020.
100% Shares of the company is with President of India. The offer is Pure OFS vide which Govt of India is diluting its stakes up to 2.241 Cr Equity Shares. The total outstanding Equity Shares before the issue were 22.41 Cr and it will remain the same as it is a pure ofs.
SWOT Analysis of Mazagon Dockyards:
(i) The company is having a fairly good order book position at present with two frontline warship
projects comprising of four Frigates and four Destroyers and one submarine project comprising of
six Scorpene class submarines.
(ii) The company has a vast repository of legacy data pertaining to shipbuilding and submarine
construction. A highly valuable Technical Information Centre(TIC) is existing within the company
(i) The real estate availability of the company is limited to 75 acres, which restricts operations of
(ii) Depleting strengths of experienced blue-collar work force due to retirements.
(i) Indian Navy requires a large number of frontline warships to meet the required force levels. This
affords good business opportunities for shipbuilding companies across the country, including the
(ii) The company can facilitate the ‘Make In India’ initiative promulgated by the GoI, for some of
the critical ship-borne systems/ equipment in close liaison with OEMs.
(i) The Defence procurement procedure adopted by the Government of India, which focuses on “Make Indian. Buy Indian”, has encouraged the domestic private sector to invest and participate in defence production. The company will have to prepare for an era beyond the “nomination” era as private sector shipbuilders would like the government to introduce competitive bidding for warship building. The new Defence Procurement Procedure promulgated by the MoD also encourages private sector participation in the acquisition of defense assets.
(ii) Stiff competition from established foreign players. There is stiff competition from various private sector shipyards in the international markets such as China, Japan, and South Korea. Based on their stronger market positions, competitive labor cost, government supports and larger production capacities, these shipyards may compete vigorously on price.
(iii) Excessive dependence on the Ministry of Defence and the Indian Navy to procure its order
Any tentative price band
(i) The Peer Company is Cochin Shipyard which is trading at P/E of 13.61.
(ii) As per 6MFY18 financials, the Mazagon Dock has a PAT of is 285 Cr . The annualized profit would be close to 570 Cr.
(iii) The EPS would be 25.
(iv) If we give P/E between 15-18, the Price could be in the range of (375-450).
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