Mazagon Dock Shares plummet by 6.9% as govt declares sell its stake up to 4.83%

Shares of Defence PSU stock, Mazagon Dock Shipbuilders Limited are trading Rs 2,550.00 down by Rs 187.55 or 6.85% on the NSE in the early trade session. The Government of India, through the Ministry of Defence has announced for an offer for sale (OFS) of Mazagon Dock Shipbuilders Limited shares at a floor price of Rs 2,525, with a 7.7% discount to the current market price of Rs 2,738.

On Thursday, the government announced that it will sell up to 4.83% stake in Mazagon Dock Shipbuilders through the OFS. Currently, the government owns 84.8% stake in the company at the end of the December quarter.

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The Floor price of the Offer For Sale has been fixed as Rs 2,525 per share, acting as a discount of around 8% to Thursday's closing price. The OFS has been opened for non-retail investors today and will open for retail investors on Monday, April 7.

The OFS is going to be conducted in two phases where non-retail investors (QIBs and HNIs) can participate today (April 4, 2025), while retail investors' window will be open on April 7, 2025).

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On their particular days, both portions will run from 9:15 am to 3:30 pm during market hours. Of the sale (1.75 crore shares valued Rs 4,426.37 crore), 90% has been set aside for non-retail investors; the remaining 10% (19.48 lakh shares valued Rs 491.82 crore) is for retail investors.

Eligible staff members may also be granted 50,000 stock shares. Of the non-retail segment, 25% has been set aside for insurance companies and mutual funds. While bigger offers come under the non-retail category, retail bids are defined as those up to Rs 2 lakh.

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