Mazagon Dock Shipbuilders Stake Sale: How To Apply For Rs 5000 Crore OFS? Floor Price and Other Details

Mazagon Dock Shipbuilders OFS: The central government has announced its plan to sell up to 4.83% of Mazagon Dock Shipbuilders through an offer for sale (OFS). The move is expected to generate approximately Rs 5,000 crore for the exchequer.

The public sector undertaking ( PSU ), which operates under the Ministry of Defence, will initially divest 2.83% of its equity in Mazagon Dock, with an additional 2% available as a greenshoe option.

Offer Details

The government intends to sell the shares under the Offer for Sale route, with the sale taking place in two phases.

On April 4, 2025, only non-retail investors can place their bids. For retail investors, employees, and non-retail investors who wish to carry forward their unallocated bids from T day (transaction date), the sale will continue on April 7, 2025.

Additionally, there is an oversubscription option, under which the government could sell up to 80,67,600 equity shares (representing 2% of the total paid-up equity share capital). This brings the total potential stake being offered to 4.83% of the company's equity capital.

Employee Offer

As part of the offer, 50,000 equity shares (equivalent to 0.26% of the offer shares) will be available for eligible employees of Mazagon Dock Shipbuilders. Employees will be allowed to apply for equity shares worth up to Rs 500,000, subject to approval from the competent authority.

Bidding Process and Timings

The offer will be conducted on a designated window of the stock exchanges. For non-retail investors, the bid window will open at 9:15 a.m. and close at 3:30 p.m. IST on April 4, 2025. Non-retail investors who are not allotted shares on T day can carry forward their unallocated bids to T+1 day (April 7, 2025), where they will have the opportunity to revise and re-bid for shares.

For retail investors, employees, and non-retail investors carrying forward their bids, the offer will continue on T+1 day (April 7, 2025), with the same trading window hours, from 9:15 a.m. to 3:30 p.m. IST.

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Floor Price and Offer Details

The floor price for the sale has been set at Rs. 2,525 per equity share. The equity shares offered will be available through the stock exchange window on NSE and BSE.

Mazagon Dock Shipbuilders Share Price Today

Shares of Mazagon Dock Shipbuilders experienced a steep decline of 6.49% in the early trading session, closing at Rs 2,557.95, down by Rs 177.50 from the previous close of Rs 2,735.45. The stock opened at Rs 2,571.40 and traded within a range, reaching a high of Rs 2,594.00 and hitting a low of Rs 2,542.50.