The Economic Times daily newspaper is available online now.

    Mazagon Dock Shipbuilders IPO subscribed 21% within 30 minutes

    Synopsis

    Mazagon Dock Shipbuilders has fixed price band for the issue at 135-145 per share.

    dockAgencies
    Brokerage Geojit Financial Services has given ‘Subscribe’ rating to the issue.
    The initial public offering (IPO) by Mazagon Dock Shipbuilders (MDSL) was subscribed 21 per cent on the first day of the public offer till 10.30 am (IST).

    The public offer received bids for 62,91,961 shares so far against 3,05,99,017 shares offered by the company. The retail portion was subscribed nearly 75 per cent so far, while that reserved for non-institutional investors saw 0.39 per cent subscription.

    Mazagon Dock Shipbuilders has fixed price band for the issue at 135-145 per share. The issue will close for subscription on October 1. The offer is expected to raise about Rs 444 crore at the upper end of the price band and at the lower range about Rs 413 crore.

    Shares of the company are proposed to be listed on BSE and NSE.

    The company, incorporated in 1934, is a 'Mini-ratna-I' public sector undertaking under the Department of Defence Production, (MoD). Headquartered in Mumbai, the core capabilities include construction and repair of warships, submarines for Indian Navy and other vessels for commercial clients.
    « Back to recommendation stories
    I don't want to see these stories because
    SUBMIT

    With a capacity of 40,000 Dead Weight Tonnage (DWT), MDSL is India’s only shipyard to have built destroyers and conventional submarines for the Indian Navy and is also the first shipyard to manufacture Corvettes (Veer and Khukri Class) in India.

    Amarjeet Maurya -AVP-Mid Caps, Angel Broking said, “In terms of valuations, the pre-issue P/E works out to 6.1 times FY20 earnings (at the upper end of the issue price band), which is lower against peers like Garden Reach Shipbuilders and Cochin Shipyard. Further, MDSL has a healthy ROE of around 16 per cent coupled with highest dividend yield and higher cash on balance sheet among its peers. Hence, considering these factors, we recommend ‘Subscribe’ to the issue with a long-term horizon.”

    Brokerage Geojit Financial Services has also given ‘Subscribe’ rating to the issue.



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in